More Americans Turn to Bankruptcy
After paying for food and shelter, a rapidly growing number of families donÛªt have enough left over to pay their bills, and they are turning to the bankruptcy courts for protection.</br></br>Their dilemma is reflected in a dramatic upsuxÛªge in bankruptcy filings around the 'country. The increase, which seems to have started about the first of the year, has only now begun to atract the attention of economists and businessmen.</br></br>It is widely believed to be the first time in history that inflationÛÓnot unemploymentÛÓhas sparked such a rapid increase in individual insolvencies.</br></br>By filing for bankruptcy, a debtor puts his assets in the hands of a federal court. In return, he gets protection from the demands of his creditors.</br></br>In theory, the court distributes the debtorÛªs assets among the creditors, but in the case of consumer bankruptcies this rarely happens. Most states provide various exemptions for personal belongings. In California, for example, a bankrupt can keep his car, the tools of his trade, $10,000 in equity in his home ($20,000 if he is manned) and $1,000 in a savings and loan association.