Bankruptcy filings up 30 percent across state

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The number of Wisconsinites filing for bankruptcy is up 30 percent from a year ago.

Almost 4,600 residents filed bankruptcy petitions from January through March, up from 3,500 in the same quarter of 2007.

Madison bankruptcy attorney Claire Ann Resop says we’re just seeing the tip of the iceberg, as those who’ve barely kept up with their mortgages get sunk by higher food and fuel costs.

Nationally, bankruptcies are up 27 percent and Wisconsin’s increase is a couple points higher.

Bankruptcy lawyers say more folks cannot refinance their homes because property values are dropping.

As a result, they’re getting farther behind on fuel bills and they’re drowning in credit card debt to pay their medical bills.

“When you get your little 3 to 3.5 percent raise, and everything else goes up 6 to 10 percent you can only do that so long before you have to say ‘uncle,’” said Kathryn Crumpton, a Milwaukee credit counselor.

Tags: wisconsinnews, bankruptcies, 30percentincrease