Record Numbers Claim Bankruptcy

Rush to File Before Law With Stricter Standards Takes Effect

(AP) 
Christian, whose husband just found work nine months after losing his job, said bankruptcy will enable her to pay what she can. "I think everybody should be able to wipe the slate clean and start over," she said.

Similar stories could be heard at courthouses across the country.

Michael G. Bennett, 36, of Dedham, Mass., filed for Chapter 7 protection after six years of financial trouble left him with $35,000 in debt.

"It hasn't happened overnight," said Bennett, who has a wife and 2-year-old son. "It will be much easier now to keep the creditors at bay."

In Charlotte, N.C., the handful of people filling out bankruptcy petitions included Lorraine Martinson, 44, who was expecting to give birth to her first child Friday.

"Both my husband and I owned our own businesses. I used to have real good credit so I was able to take out all kinds of credit cards," she said. "When we missed a payment, all of a sudden the interest rate was 30 percent."

She said they tried to catch up but found themselves falling deeper in debt.

"We spent a year crying over this," she said. "I'm not happy about it, but what choice do I have?"

At the bankruptcy court for the Southern District of New York in Manhattan, people huddled under umbrellas against the rain as they waited for court to open.

"Right now, my whole thing is to regroup," said Pamela Green, who said debt forced her to close her women's clothing boutique.

In Plano, Texas, attorney Veronica Weaver was holding a stack of cases she planned to file.

"We are seeing a little bit of everything, some of it's for medical reasons, some of it's a job loss and some are behind on mortgage payments," she said.

Bankruptcy attorney Tom Feezey of suburban Chicago ran radio commercials in the recent weeks to notify prospective clients about the law change. Apparently it worked: Feezey said he made 15 Chapter 7 filings this week — triple what he would normally file in one month.

"Now I know what it feels like to be an accountant on April 15th," Feezey said.