2009 Bankrutpcy Filing Increases
In this period of increased unemployment rates and home foreclosures, personal bankruptcy rates continue to increase. Last year, it has been reported, that personal bankruptcies increased by over thirty percentage points. As more and more Americans face the financial realities brought on by our current economic situation, it is expected that bankruptcy filings will continue to increase.
Total bankruptcy filings in 2009 climbed to almost one and half million. This is more bankruptcy filings than the United States has seen since Congress revamped the bankruptcy law system in 2005. Those changes were designed with the purpose of making filings more difficult. The 2009 numbers were twice as high as the filings made two years ago.
Chapter 7 bankruptcy filings were particularly high. As of November, these filings were reported to have increased by just under 50%. Under Chapter 7 filings, debtors can liquidate assets to pay a portion of debt while eliminating some of the debt as well.
In addition to Chapter 7 increases, Chapter 13 filings are also on the rise. While Chapter 13 filings didn’t rise at the same rate as Chapter 7′s, they did increase by over 10%. These filings constitute less than 1/3 of the total filings.
Bankruptcy filing increases varied from state to state. For example, Arizona saw huge filing increases while South Carolina saw a very small increase. This demonstrates the different effect of legislation and economic factors unique to the individual states.
With the national unemployment rate on the rise, and the continually falling housing market, many individuals who were financially solvent are now making bankruptcy a realistic consideration. While there is a lot of information available to families considering bankruptcy, there is really no substitution for talking with an experienced bankruptcy lawyer about what are the best options for the particular situation. There are unique considerations to be made depending on the particular financial situation of the individual.
As bankruptcy filings continue to rise, it is become more common for Americans to know someone who has either filed or is considering filing for bankruptcy.
When you are facing creditor harassment, wage garnishment, or foreclosure, learning your options needs to be your first priority. People often feel helpless when they find themselves in financial situations like these. Get a free bankruptcy consultation fromBankruptcy Lawyer MA Matthew Desrochers. Debt issues are not something to take lightly, but it is not as scary as you might think.