Bankruptcies likely to spike, experts warn

Bankruptcies likely to spike, experts warn

Adjustable-rate-mortgage payments are rising, forcing unpleasant options.

In the year since a tougher federal bankruptcy law took effect, personal-bankruptcy cases have plummeted, and consumers must clear more hurdles than ever to get a financial fresh start through the courts.

That’s a stark contrast to previous years, when personal bankruptcies hit record levels, peaking last October as hundreds of thousands rushed to file before the stricter law took effect Oct. 17.