Bankruptcy statistics are released every month. It is important to analyze these numbers in order to understand the current economic state of our country and where it’s heading. Let’s take a closer look at the exact numbers provided by the National Bankruptcy Research Center:
• 137,000 bankruptcy filings were recorded in May 2010 which was a decrease from the 145,000 filed in April
• Bankruptcy filings in the first five months of this year are 15 percent higher than the bankruptcy filings in the first five months of 2009
• 5,700 households, or 1 in every 175 households, filed bankruptcy in May 2010 with the majority stemming from the Southwest and Southeast regions
• Nevada and Georgia had the highest bankruptcy rates while Alaska and South Carolina had the lowest compared to the national average
• Only 26 percent of bankruptcy filings in May were under Chapter 13 bankruptcy
NOTE: That last number shows the alarming trend of massive Chapter 7 cases despite recent measures taken by the U.S. government to place stricter regulations on Chapter 7 bankruptcy and funnel most cases under Chapter 13, the repayment plan.
Bankruptcy Rates Fluctuate
It seems to be that the more things change, the more they stay the same. While some states are improving on their bankruptcy numbers, showing proof that the recession is over and the jobless rate is lowering; other states continue to rise in terms of bankruptcy cases.
Don’t let your debt strangle you into submission. Bankruptcy serves as protection for you from your creditors and you should definitely take advantage of it if your situation calls for it. Talk to a bankruptcy attorney in your area today about your state’s bankruptcy numbers and whether or not you will have to join them.
