During these harsh economic times more and more people are filing forbankruptcy. Once frowned upon, it is now a common option for individuals withunmanageable debt. This is despite the fact that the laws have made it moredifficult to file for bankruptcy. Plus let’s not forget the implications andthe cost of filing for bankruptcy. Bankruptcy statistics clearly show there isan increase in large proportions of individuals filing for bankruptcy.
These statistics are normally complied by the administrative office of theU.S. courts. They are done quarterly with each quarter ending December, March,June and September. According to bankruptcy statistics released earlier thisyear, chapter 7 filings have increased 43%. Also on the increase are nonbusiness bankruptcies which have risen 31%. On the other hand businessbankruptcies have risen 54%. This increase is blamed on the fact that we are asociety that is hooked on material things even when we have the inability tocater for them. If by some misfortune we are caught by an emergency that needsfinancial resources, we get into debt while trying to come up with themoney.
This digs us into a hole that is very difficult to get out of. Most familiesthat usually file for bankruptcy do so for a number of reasons. The leadingcause are jobbing loss, medical problems and credit card debt. According tobankruptcy statistics, credit card debt can be avoided if people just havediscipline and learn how to use cash when making purchases. It is a very easytrap to get into because you do not actually see how much you are spending atany given time and you end up spending more than you earn.
According to the demographics the average age of people filing forbankruptcy is 38 years. According to The Fragile Middle Class: Americans inDebt by Elizabeth Warren, 44% of filers are couples, 30 % are women filingalone while 26% are men filing on their own. In addition, two out of threepeople who have filed have suffered a job loss. The states with the highestbankruptcy rates are Alabama, Georgia, Tennessee, and Utah.
Mercy Maranga writes content on Finance and Debt Management. Visit her sitehere for more information on Finance and how to effectively Manage your debts.Bankruptcy