Much of the nation has suffered financially over the course of the past few years, leading many to file for either Chapter 7 or Chapter 13 bankruptcy to deal with the difficulties. During that period certain businesses, such as those in the debt relief industry, have taken advantage of the situation. These businesses have done quite well providing individuals with options for dealing with their debt.
These businesses may find that more recently, things don’t look nearly as good however. This is because nationwide, as of the end of September, the number of consumer bankruptcies filed in the preceding 12 months has dropped a total of 14 percent, from 1,467,221 to 1,261,140. This is the case not only with Chapter 7 filings, but chapter 13 filings as well.
More specifically, Chapter 7 filings dropped almost 16 percent, down to 874,337 from 1,036,950. Chapter 13 filings have seen a bit smaller, but still sizable drop as well, from 417,530 to 375,521. That translates into approximately a 10 percent change. At least one consumer debt expert believes this could be an indication that the economy is rebounding.
That same expert is quick to point out that even if the economy is on the mend, it does not mean that people will altogether stop filing for bankruptcy. Rather, what will likely happen is that individuals will begin to accrue more debt again. Inevitably not everyone will be able to payback what is accrued which will in turn lead to another increase in the number of individuals seeking debt relief. The number of people in this position is not expected be anything like what was seen in the recession however.
Source: Huffington Post, “Bankruptcy Filings Down in 2012, Continued Bad News for Debt Relief Industry,” Steve Rhode, Nov. 7, 2012