The lull in bankruptcy filings may already be a thing of the past.

Consumer bankruptcy cases plunged to a 20-year low in the first three months of 2006, reflecting the passage of a tough new bankruptcy law last year. But the pace of new filings is already on the rise.

Courts now see an average of 2,000 new filings a day — four times the number that were filed in November 2005 after the bankruptcy law went into effect, according to Chris Lundquist, founder of Lundquist Consulting, which tracks bankruptcy trends.

If filings continue to rise at anything like this rate — which is not a given, but certainly a possibility — we could see close to 1 million filings by the end of the year.
msn.com

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