Bankruptcy Caseload Increases with New Law
The following post portraying a day of crazed bankruptcy creditor meetings comes from The Shelby Starr
"It just takes a couple of bumps in the road to land in bankruptcy.
Just ask the crowd of folks who flooded the Cleveland County courthouse and surrounding parking lots Friday morning for bankruptcy court. Deputy M.V. Reavis said bailiffs were told to expect about a thousand people.
They reside in U.S. Bankruptcy Court's Western District of the state, which includes six counties.
They ranged from young adults to senior citizens. Some had young children in tow.
Friday was the first meeting with creditors.
In the courtroom handling Chapter 7 filings, pews were so full some people stood along the doors until a seat became available.
Trying to determine if his clients were in the courtroom, one attorney announced, "If I'm your attorney, would you raise your hand?"
Some blamed the economy, job losses, and most recently, a change in the state bankruptcy law - for the large crowd.
So there wouldn't be any surprises, many said their attorney forewarned them about the heavy number of cases.
Lamar Suttles considers himself one of the lucky ones. He was told he was free to go by 9:20 a.m.
The Morganton resident says child support is the primary reason he landed in Chapter 7 bankruptcy.
"Half my check's going - one for this, one for that."
On Oct. 17, a new bankruptcy law took effect under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
"And that's one reason there's been such a rush," to file, said Huntersville Attorney Mike Elliott. "It severely limited their ability to file Chapter 7."
Most of the people in court Friday filed their cases about 30 days ago, he said.
He represented four clients in court Friday, but said he has about 50 he will represent in Charlotte in the next few weeks.
