Jan 23 2010
2009 Bankrutpcy Filing Increases
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 unemployments on the rise and home foreclosures continuing to climb, it is expected that more people will make the difficult decision to file bankruptcy.
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.
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.
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.
With more and more Americans considering bankruptcy as a real option, the stigma associated with filing bankruptcy is on the decline. Many more families are either directly effected by financial problems or know someone who is experiencing serious financial hardship.
If you are facing creditor harassment, wage garnishment, or foreclosure, learning your options needs to be your top priority. People often feel helpless If they find themselves in financial situations like these. Get a free bankruptcy review fromMassachusetts Bankruptcy Lawyer Matthew Desrochers. Debt issues are not something to take lightly, but it is not as scary as you might think.
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