Bankruptcy the 'best option' for more debtors

Bankruptcy the ‘best option’ for more debtors

May 21, 2009 6:05 PM PT

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More debtors are running out of alternatives, leaving many with no choice but to file for bankruptcy, according to a Florida-based consultancy.

The number of people whose best option is determined to be bankruptcy protection jumped 42% in the first four months of this year compared with the year-ago period, according to InCharge Debt Solutions.

The organization, which conducts nearly 100,000 free credit counseling sessions annually, now reports seeing more than 700 clients daily who have filed for bankruptcy. In the fall, the average was 100 filers.

-- Tiffany Hsu

Money & Company

Tiffany Hsu

Tiffany Hsu is a former staff writer for the Los Angeles Times. Previously, she wrote about the California economy, fast food, restaurants, retail and alternative energy for the Business section. A Bay Area native, UC Berkeley graduate and eternal Nor-Cal fan, she once worked for the San Francisco Bay Guardian. She also did a stint at the Richmond Times-Dispatch, where she developed a passion for sweet tea. She still has faith that someday she’ll find two economists who agree.

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