If you had it tough during the past few years, you may have hoped the lifting of restrictions would create opportunities that allowed you to get back on track with your debt payments. Yet, for many people, it turns out that was more fantasy than reality.
Prices for many essential items have surged due to the global situation, and if you struggled to make ends meet before, it might be even harder now. Hence it is no surprise that recent figures show bankruptcies have risen.
A 10% increase on the previous year
That is the figure for all types of bankruptcies combined. Filings for Chapter 7 were 13% higher in July 2022 than in July 2023. Chapter 13 filings rose 15%.
Is this necessarily a bad thing?
Clearly, it is not ideal that more people need to file for bankruptcy. Yet you can also look at filing as a positive step. Surely it is better to accept your current reality is beyond salvage and take positive action, such as filing, to do something about it, than to carry on in the hope that a miracle will save you.
It can be tough to make the decision to file for bankruptcy. Yet, like all problems, accepting you have a problem and asking for help is the best way to solve it. The sooner your file, the sooner you can sort out your finances and start to rebuild your credit score and assets for a brighter future. Bankruptcy can happen to anyone. Don’t feel bad about it. Instead, get legal help to find out more about how filing could put you start afresh.