Bankruptcy filings are on the rise

On Behalf of | Feb 13, 2023 | Bankruptcy

Financial issues have begun to become very serious for a lot of people across the United States, with rising costs, inflation and perpetually low wages. As such, you may not be surprised to find out that bankruptcy filings have been rising. The statistics for 2023 are just getting underway, but we can look at the differences in past years to see how the trend has already begun moving.

For example, studies looking at the number of bankruptcy filings in 2022 noted that they were 6% higher than the number in 2021. In fact, the total increased from 27,997 to 29,631. Most of these were individual filings, which increased from 26,306 to 27,919. That was also a 6% rise. There were some commercial bankruptcies to factor into this, at around 1%, but the vast majority of those suffering from serious financial problems are consumers and individuals, not business owners.

What options do you have?

Fortunately, you do have numerous options. If you are still earning a wage, you may be able to use Chapter 13 bankruptcy. This will create an affordable repayment plan so that you can pay down debt over the next few years. 

If you’re not earning money, then you may have the option to use Chapter 7 bankruptcy. This is different in that it eliminates your debt, but you do have to liquidate your non-exempt assets to pay back some of that debt. Fortunately, many things are exempt from this liquidation process, such as your tools of the trade, your primary vehicle or other things that are necessary for your life.

Be sure that you know exactly what legal steps to take if you do want to explore these bankruptcy options.