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This year Illinois bankruptcy filings were once again on the rise. While there are a number of contributing factors that have resulted in an increased number of filings there are three main factors responsible for the majority of filings. Read more about these factors below.

Cause #1 Underwater mortgages. The housing market is partially responsible for a number of bankruptcy filings. Many people took out loans for dollar amounts in excess of what they could afford. As property values on these homes dropped, many were left in underwater mortgages where they owed more on their home loan than the current value of the home. As these people fell behind on their payments, many of these homes went into foreclosure.

Cause #2 Unemployment. For a number of people that had to file for bankruptcy this year it was due to the fact that they lost their job. Many businesses had to make cutbacks in order to stay afloat and a number of businesses had to freeze wages and take away benefits to avoid going under. The problems with employment contributed to the rise in bankruptcy filings.

Cause #3 The rising cost of fuel and goods. Many families living under a tight budget were unable to cope with the rising costs of gasoline and a number of other products that they buy on a regular basis. As the costs of these goods increased, many of these people began to accrue debt as they turned to credit cards to cover the additional expenses.

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