BankruptcyBankruptcy Filings Down for 2013, But Still More Than Double the Number During the Great Depression

May 28, 20130

Statistics show that, for the year 2013, Utah was the only state that saw an increase in bankruptcy filings, climbing a modest 1 percent. On a national scale, this is good news, as it shows that the number of filings in all other states is declining. For example, the number of petitions filed in the state of Nevada dropped more than 19 percent. Here in California, the total dropped a substantial 8 percent.

Despite these figures, the number of bankruptcy filings each year in the United States is now more than double the number that occurred during the entire decade of the Great Depression. Why? Actually, there are several contributing factors.

  • Bankruptcy is more widely accepted today as a legitimate way to recover from financial difficulties. This isn’t good or bad, it simply means that awareness of Chapter 7 relief and its possible positive effects has grown since the 1930s and 40s.
  • An incredible number of “bankruptcy mills” now offer cheap, quick bankruptcy protection for individuals and advertise their services as a solution to debt problems. This is the “dark side” of the debt relief battle, as many individuals that choose these agencies often don’t recover from their financial problems, or find themselves back in the same situation within a few months or years of filing.
  • People take more and greater financial risks in today’s economy. This statement covers a lot of territory, such as investing, employment, home buying and entrepreneurship. Risk is the basis of many a personal success story, but it can also lead to serious financial difficulties. When this occurs, bankruptcy protection may be the best option for some.

As you can see, this increase in the number of bankruptcies processed by the Courts isn’t necessarily a harbinger of disaster. In fact, it’s probably more significant that the 2013 statistics indicate fewer filings than the previous year. Either way, it’s important to understand that there are a wide range of options available to individuals whose debts are becoming too burdensome. While filing for bankruptcy protection isn’t as devastating as it was once thought to be, it should still be considered a last resort, after all other options have been explored. There are a surprising number of alternatives that may offer relief at less cost and complication.

If your debts are becoming overwhelming and you’d like to understand your options, contact accomplished ESCONDIDO BANKRUPTCY LAWYER Jeff Larkin. To seek advice from SAN MARCOS BANKRUPTCY ATTORNEY Jeffrey Larkin, call 877.25.NEW.HOPE for a free consultation today or visit his BANKRUPTCY LAWYER IN CARLSBAD CA Google+ Local page.

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The Larkin Law Firm is a debt relief agency. In addition to other debt relief services provided, we help individuals and businesses file for bankruptcy protection under the Bankruptcy Code.

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