Household HSBC Watch

The overall quarterly increase in bankruptcy filings was fueled by consumer Chapter 7 filings, which rose 17.7 percent, to 362,481 from 308,028, for the second quarter of 2004. Under Chapter 7, a person’s assets are liquidated, except those exempted by law, and debts are wiped away. Such cases are usually simple. The average filer doesn’t even appear before a judge. This recent surge in bankruptcy petitions is largely attributable to consumers scrambling to file before the new, tougher Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 takes effect Oct. 17.

“We are having a spike in filings such as I have never seen in 23 years of practicing bankruptcy law,” said Kevin C. Gleason, an attorney from Hollywood, Fla.

HSBC Watch, a consumer advocacy organization, published a three part series on debt collectors which can be seen here.