These days, it seems that any good news about the economy or how Americans are faring in the wake of the recession always comes with some sort of negative caveat. Well, what we are going to report today is no exception. According to a report from the National Bankruptcy Research Center, fewer Americans filed for Chapter 13 or Chapter 7 bankruptcy in 2011 in comparison to 2010. However, experts expect that decline to be only temporary, and personal bankruptcies to increase once again the coming year.
Last year, about 1.35 million people in Georgia and throughout the U.S. entered Chapter 13 or Chapter 7 bankruptcy, which amounts to about one out of every 175 Americans. This is a decline from 2010, when about 1.5 million people, or one out of every 150 Americans, filed for personal bankruptcy.
In 2011, Chapter 7 liquidation bankruptcy filings fell by about 17 percent from 2010, while Chapter 13 rehabilitation filings dropped by 25 percent.
The drop was the first of its kind since 2006, well before the economic recession. However, economists warn that the positive development will likely be short-lived. Personal bankruptcy filings increased during the months of November and December, and this trend is expected to continue into the new year.
If you are having trouble paying your bills and making ends meet, a Chapter 7 or Chapter 13 bankruptcy filing may be the right next step for you and your family. It may be in your best interest to contact an experienced bankruptcy and debt relief attorney and discuss all of your options.
Source: Los Angeles Times, "Personal bankruptcies fall in 2011 to one out of 175 Americans," Tiffany Hsu, Jan. 5, 2012