Released: October 22, 2008

Public likely to pay for rising personal bankruptcies

Source: David Lazarus, Los Angeles Times (Free Registration)

Matthew Shelbourn knows money. The 27-year-old Cerritos resident studied accounting as an undergrad at USC and kicked around various jobs in the financial sector before settling into his current gig as controller at an Anaheim pipe-manufacturing company.

By year-end, though, Shelbourn said he’s all but certain to file for Chapter 7 bankruptcy protection.

He told me he’s struggling to crawl out from under about $150,000 in student loans, $25,000 in credit card debt and $20,000 in medical bills, not to mention a pile of late fees that have accumulated because of missed payments.

“If I had to pay it all back, I’d find a way,” Shelbourn said. “But I feel like I’m at a turning point in my life. I want a clean slate. I want to start over.”

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