Bankruptcies Up In 2009

In this period of increased unemployment rates and home foreclosures, personal bankruptcy rates continue to increase. Last year, it has been reported, 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.

In 2009, the U.S. saw the total number of filings pass 1.4 million. With last year’s filing increase, the total filing number was higher than it has been since 2005, the year the government significantly changed the bankruptcy laws in an attempt to drastically reduce the number of filings. The 2009 filing numbers are over double the numbers we saw in the year 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.

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.

Nevada and California each saw some of the highest increases in filings. However, no state surpassed Arizona which saw increases in filings of about 80%. While those states saw large filing increases, states like Pennsylvania and Tennessee saw much more limited increases with filings ranging between ten and 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.

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, finding out your options needs to be your top priority. People often feel helpless when they find themselves in financial situations like this. Get a free bankruptcy consultation fromBankruptcy Attorney Massachusetts Matt Desrochers.