While people nationwide continue to take out loans, they are doing so cautiously to avoid the need for filing for bankruptcy. The result is that across the country, Chapter 13 bankruptcy filings are down.
Across the country, bankruptcy filings have decreased 14 percent. This is good news for the entire country, as it shows that consumers are becoming more conscious of their spending and are finding ways to keep themselves financially afloat. Consumers are getting better at debt planning and have been able to avoid the need for filing for bankruptcy. While this is good news for the nation as a whole, the news is not as positive for Tennessee, which has the second highest amount of bankruptcy filings in the nation.
The recent study also reveals that even though bankruptcy filings are currently down, including filings for Chapter 13, they have the potential to go back up. People are still taking out loans because the economy is still suffering. Many are also taking out student loans because they have chosen to go back to school. This means that there is still room for future bankruptcy filings as people continue to face future debt.
Often, people can avoid bankruptcy by sound financial planning. This might involve attempting to minimize their debt and being smart about what loans they take out. Consumers can also meet with financial and debt relief planners to work out their financial future. An experienced bankruptcy attorney can also help people facing financial challenges assess all their options and find a way to avoid declaring bankruptcy.
Source: Huffington Post, "Bankruptcy Filings Down in 2012, Continued Bad News for Debt Relief Industry," Steve Rhode, Nov. 7, 2012