Let me take a shot at it..
Sharp raise in (1) is not right. It should be "rise" instead. So, (1) is out.
Scanning down .. "rise of" and "rising of" sound unidiomatic. So, eliminate (3) and (4).
Now, looking at (2) and (5), I like the usage of "appears to <be or infinitive form of verb> better. So, I'd go with (5). I also like "Despite" better than "Even as"
What is the official answer?
Vicky wrote:
Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in personal bankruptcies over the next few years signalling much pain for the many hard-pressed households, little, if any, gain for lenders, and major problems for the overall economy.
1 Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in
2 Even as bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise in
3 While the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rising of
4 Although the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise of
5 Despite the bankruptcy reform appearing to head for a certain passage in the Congress, the economic omens point to a sharp rise in