When individuals consider their financial situation, they may find themselves wondering what the best way to handle their debt could be. Bankruptcy may be an option they consider, but Memphis residents may also feel that filing for Chapter 13 or other forms of bankruptcy may negatively separate them from other individuals who are trying to handle their difficult financial situations. However, individuals may be interested in knowing that thousands of filings for bankruptcy are submitted every year.
The Memphis area typically sees a considerable number of filings, and for the first time since 2011, the number of filings was below 3000 for the second quarter of the year. The same three ZIP code areas saw the highest number of filings during the second quarter of this year as last year. These numbers included filings of personal bankruptcy and those for company filings.
The entire first half of this year has seen just over a 3 percent drop in the number of filings in the area as the first half of last year. Chapter 13 saw the most filings, which made up almost 78 percent of all filings in this second quarter. Nearly 18 percent of the filings were Chapter 7 bankruptcies. There were also four Chapter 11 bankruptcies filed for organizations in the area.
Though the numbers for bankruptcy filings have gone down in the Memphis area, there was still a considerable number of them. Therefore, individuals should not feel as if they are alone in their financial struggles. Many parties may see the benefits of bankruptcy, which has led to the thousands of filings in the area. For individuals who are less sure, information on Chapter 13 and other forms of bankruptcy could help explain the benefits.
Source: memphisdailynews.com, "Bankruptcy Filings Drop Below 3,000", Bill Dries, July 18, 2014