Based on the most recent statistics, bankruptcy filings are down among consumers. The number of filings is down approximately 13% and experts expect this trend to continue through the rest of the year. Bankruptcy filings had been up, according to a St. Louis Chapter 7 bankruptcy lawyer, due to the Great Recession of 2008. While the economy is still trying to gain traction to get the country back to pre-recession levels, this decrease in filings shows that people are doing better at avoiding the crippling debt that affected both consumers and businesses alike.
St. Louis Chapter 7 Bankruptcy Lawyer Explains the Decline
The number of bankruptcy filings peaked in 2010 at 1.5 million. This was caused by continued problems in the economy, including:
- Underwater mortgages
- Lost jobs
- Decreased savings
- Tightening credit
Because of this confluence of problems, St. Louis Chapter 7 bankruptcy lawyers saw a major increase in filings as people sought to discharge debt. Chapter 7 allows people to discharge unsecured debt like credit card bills, allowing a person to get a fresh start with no debt. As the government has stepping in to help struggling consumers, however, many people have tried to get through their financial problems without filing for Chapter 7 protection.
It is unclear if this reduction in filings with continue. This is because many government programs will soon be winding down, leaving consumers in the cold when it comes to debt. It also may mean that businesses will take a hit, causing people to lose their jobs and putting them in financial jeopardy. Hopefully, the reduction in filings will continue as the economy gets better.
If you need a new beginning, contact the St. Louis Chapter 7 bankruptcy lawyers at The Westbrook Law Group, LLC. If the debt is becoming too much, the phone calls from creditors becoming too numerous, and it seems like there is nowhere else to turn, we are here to help.