According to recent studies, bankruptcy filings in the United States dropped 12 percent in 2012. Statistically speaking, this is a steep decline.

Experts disagree on the reasons for this marked decrease in the number of individuals filing for protection under the Bankruptcy Code. While some state that the change is due to a national decline in credit card debt, others argue that the number of people that benefit from filing bankruptcy is decreasing.

While it may be impossible to determine which of these theoretical causes is correct, it’s important to understand the implications of both claims. A decrease in credit card debt could be an indication that people are managing their money more carefully and therefore, building less credit card debt. That’s a good thing for the individual. On the other hand, the decline could be due to an overall decrease in spending, caused by a less-than-optimistic view of the national economy. While this isn’t encouraging news, it may still mean that people are more careful with their spending and that’s good.

The second claim is a bit more serious, since bankruptcy laws were created to provide individuals with a means to recover and rebuild. If that isn’t the outcome, there are two possible reasons:

1. The individual didn’t have enough dischargeable debt to file and should have been advised of alternative method, such as credit counseling or reorganization.
2. The individual wasn’t advised of the possible pitfalls after having debts discharged or didn’t heed the advice he or she was given.

At the Larkin Law Firm, we believe we have a responsibility to thoroughly understand each client’s situation, examine and exhaust all possible alternatives before recommending bankruptcy filing. There are a number of other options for debt relief that should be explored before entering into bankruptcy proceedings, including loan modification, debt negotiation and consolidation, short sale of real estate and more. It may also be possible to stop collection actions based on Fair Debt Collection Practices. We want you to be fully aware of your options.

Furthermore, if we do determine that filing is your best option, we believe you should know exactly what to expect and the steps to take before, during and after the process. That’s what sets us apart from the thousands of bankruptcy mills out there that simply file your papers, get your debts discharged and collect their fees. We’ll work with you to achieve the relief you need and help you avoid the potential traps that can arise after your petition has been granted.

If you need to retain a lawyer, contact accomplished TEMECULA BANKRUPTCY LAWYER Jeff Larkin. To seek advice from RIVERSIDE BANKRUPTCY ATTORNEY Jeffrey Larkin, call 877.25.NEW.HOPE for a free consultation today or visit his BANKRUPTCY LAW FIRM IN CARLSBAD CA Google+ Local page.

For more details, Please visit our website:

By Jeffrey Larkin