Although consumer bankruptcy filings have declined drastically in comparison to this time last year, Professor Bob Lawless says there are two reasons.
"That’s because federal courts have largely closed and consumers usually file for bankruptcy after they’ve hit rock bottom, not in the middle of a crisis.
“People are probably going to use consumer credit to smooth over the problems they have right now,” he said. “It doesn’t make sense to file bankruptcy if you are just going to continue to pile up debts.”
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