Well, so much for bankruptcy reform discouraging bankruptcy filings. According to a recent USA Today article, commercial and consumer bankruptcies are being filed at never before seen rates since bankruptcy laws changed in 2005. According to the article, filings are on pace to reach a stunning 1.5 million cases this year. That number would represent close to 6,000 new cases per day. With consumer credit tightening, the unemployment rate inching towards 10% and the housing decline showing no signs of letting up, its no wonder that the bankruptcy courts are so packed. In years past, consumers could rely on credit cards as a “safety net” in the event of a job loss. With defaults skyrocketing, many credit card companies have decreased available balances leaving many with nowhere to turn but bankruptcy.

Bankruptcy filings are not climbing at the same rate in every state. Nevada, Michigan and California had the biggest per-capita increase in bankruptcy filings in May, according to the article. In addition, the large increase in corporate bankruptcy filings is expected by many experts to cause a second waive of widespread consumer filings.