Affluent L.I. Residents Filing For Bankruptcy
NEW YORK (WCBS 880) – More and more people making triple digit incomes are filing for bankruptcy on Long Island.
Most attorneys admit it’s rare, but residents making even $500,000 a year are filing.
“I don’t want people to think the bankruptcy courts are allowing fat cats with a lot of assets to file for bankruptcy. That’s not happening. They really have to be hurting,” said legal expert Attorney Vincent Trimarco, Jr.
Court data showed that 901 residents on Long Island have filed for bankruptcy in September 2009 — a nearly 19 percent spike compared to September 2008.
The attorney said the people owe more than their homes are worth, and because they have lost income and bonuses, they can’t pay their car loans or credit card debt.
The bankruptcies were “to get them back on their feet and to get them to the point where they can save money in the bank,” Trimarco said.