Bankruptcy filings have dropped for the third year in a row across the U.S., by approximately 12 percent. This is seen as a sign that consumers are still very careful in taking on new debt since the Great Recession ended five years ago.
This is understandable, given the very slow job growth and stagnant wage growth. Credit and lending standards, especially for home mortgages, have be significantly tightened and this reduces the number of borrowers and, therefore, potential bankruptcy filers.
Many of those who had filed during the Great Recession in Kentucky were driven there by job loss and underwater mortgages, as the real estate market collapsed. Today, those who kept their homes may still be underwater and unwilling to expand the amount of debt they carry.
As we discussed last week, many of those who are forced to file a Chapter 13 or Chapter 7 bankruptcy, do so because of medical debt. And merely because the national rate is falling, because of the personal nature of bankruptcy, if your finances are failing, bankruptcy is one option you should consider.
If you have suffered an injury that leaves you unable to work, or have lost a job, you know your debts do not just go away. The debt collectors keep calling and mailing their demands for payment.
When you find the situation overwhelming and do not know what to do, consulting a bankruptcy attorney can provide guidance. Depending on your specific situation, a bankruptcy filing may be able to solve many of your troubles.
We understand that issues like medical debt or accident injuries are never expected and always difficult deal, wrecking the financial health of even the well prepared. Bankruptcy can allow you to regain that sense of financial well-being.
Source: Dispatch.com, “Bankruptcy filings continue three-year slide in Ohio, U.S.,” February 24, 2014