Rising Bankruptcy Costs Catch Debtors Off Guard

Law360, New York (September 13, 2007, 12:00 AM EDT) -- With the mortgage industry in crisis, the much-anticipated wave of bankruptcy filings is finally here. But many debtors are unprepared for mounting costs in the wake of recent changes to the law, experts say.

As every day seems to bring news of another subprime mortgage lender on the brink of collapse, Chapter 11 is quickly becoming the lone option for some as the liquidity in the marketplace begins to dry up.

“In the past year or two years, money was plentiful and Chapter 11 wasn't that...
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