"People on the edge (of bankruptcy) are going to be pushed in," said Robert Musgrave, Chapter 13 bankruptcy trustee for Southwestern Indiana.He
recently returned from a bankruptcy trustees' conference in Colorado where the topic of high gas prices and interest rates was discussed.
Gas prices have jumped 50 percent in the last year and a half.The Federal Reserve has raised short-term interest rates 17 times in the last two years.
The effects are being felt.
said there has not been an influx of people coming to bankruptcy court yet because of high gas and high interest rates.In fact, bankruptcies are at the lowest level now than they have been at for several years.
Filings may go up
But experts expect the number of bankruptcy filings to go up in the next six or nine months, Musgrave
That is because it takes 12 to 18 months for high interest rates to affect such things as variable-rate mortgages and the interest charges on credit cards, Musgrave
There isn't much consumers can do but cut back on expenses, he