Personal bankruptcy filings sky-rocketed in 2009. In fact, some have reported that bankruptcies filed by individuals have risen by over 30%. With the current economic climate, it should not be a surprise as more Americans face serious financial hardships. With unemployment on the rise and home foreclosures continuing to climb, it is expected that more people will make the difficult decision to file bankruptcy.
Last year saw bankruptcy filings climb over the one point four million mark. This is more filings in a year than has been seen since 2005. That was the year that the United States Congress overhauled the bankruptcy law system in an effort to decrease filings. This is also over twice as many filings as the country saw in 2007.
Filings allowing debtors to liquidate assets to pay some debt and erase portions of debt, also known as Chapter 7 bankruptcies, increased by over forty percent by November. This is the latest data for such filings.
Like Chapter 7 filings, Chapter 13 filings also saw an increase. However, these filings did not rise as high as those under Chapter 7. While Chapter 7 filings saw huge increases, Chapter 13 filings were up by only a little over ten percent. These filings still represent less than a third of the overall filing numbers.
While bankruptcy filings nationally were up, they were not evenly distributed across the states. Arizona, which saw increases of around eighty percent, had the highest number of increased filings. On the other hand, states like Nebraska and Alaska saw very limited increases, around twelve to fifteen percent.
As the national rate of unemployment continues to loom over ten percent, many citizens that had been financially secure are now in a position that bankruptcy makes more sense. Coupled with the decreased housing market, it is no surprise that many individuals are now strongly taking filing bankruptcy into consideration.
More and more families are taking a hard look at their options when it comes to filing bankruptcy. For these individuals, it is important to get good information. Government websites are a good place to start. However, in order to properly explore one’s options, it is usually best to discuss the situation with an experienced bankruptcy attorney.
If you are facing creditor harassment, wage garnishment, or foreclosure, learning your choices needs to be your first priority. People often feel helpless If they find themselves in financial situations like these. Get a free bankruptcy consultation fromMassachusetts Bankruptcy Attorney Matt Desrochers. Debt issues are not something to take lightly, but it is not as scary as you might think.
