All over the country and right here in Memphis, people continue to file for bankruptcy. Individuals continue to seek debt relief through Chapter 7 and Chapter 13 bankruptcy. However, in the year 2012, the number of bankruptcy filings is down.
Recently, a report shows that the number of bankruptcy filings dropped 10 percent in South Central Texas. This number is down for a second year straight. Also, in one of this region's bankruptcy courts, there were only 3,955 bankruptcy filings last year, down from 4,387 the year before and 4,880 in 2010.
This trend shows that the economy is rebounding. It shows that more people are employed. It also shows people are getting a hold of their debt and taking steps to manage their debt. All of this is good news for the economy. In addition, fewer people are foreclosing on their homes.
Although bankruptcy filings are down, some people still have to file for bankruptcy. For those who are in over their head, bankruptcy can provide a much-needed way out. For those who struggle with debt management, filing for bankruptcy provides an opportunity to restructure. Filing for bankruptcy allows debtors the opportunity to discharge some of their debts and work with their creditors to pay down their debts. However, student loans can never be discharged in bankruptcy.
While filing for Chapter 13 or another form of bankruptcy can be a much-needed way out for some people, it can also be very confusing. However, an experienced bankruptcy attorney can help guide the debtor through this process.
Source: MySanAntonio.com, "More people staying solvent," Patrick Danner, Jan. 3, 2013