With the stagnant state of today’s economy, bankruptcy attorney in Colorado know that it’s highly improbable that bankruptcy rates will decline any time soon. Colorado bankruptcy lawyers know that bankruptcy rates were at their peak in 2005 as many filers rushed to file for federal bankruptcy protection just prior to the implementation of new, stricter federal bankruptcy guidelines. Many of these filers were rightly justified in rushing to file before the deadline. This is primarily because it is likely that had they waited until after the new regulations went into effect then they would not have been eligible to file for federal assistance.

Soon after the October 17, 2005 implementation date of the Bankruptcy Abuse Prevention Consumer protection Act, Colorado bankruptcy lawyers witnessed a decline in consumer bankruptcy filings. That decline is now steadily climbing back up to unprecedented numbers. A number of things have contributed to the national increasing bankruptcy rate. Things like rising oil prices, have impacted basic necessities like the cost of a gallon of gas. In addition, the recent controversy involving adjustable rate mortgages has umpteen monthly mortgage payments about to balloon out of control. Without external assistance, many Americans face the imminent threat of eventually losing their homes. Many have tried to escape the overwhelming financial obligation of home ownership to no avail. New homeowners can secure very low and favorable interest rates so it’s more of a buyer’s market. Sellers face having their home on the market for record amounts of time. If they do happen to find buyers then they may have to greatly compromise on the sale price of the home as well as the inclusion of extras (like appliances), or down payment assistance. Under these trying conditions, some sellers might forego a profit and actually take a small loss to be relieved of the financial burden of a home that they cannot afford.

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