A new article in DNS News claims that the number of people who file for bankruptcy in August increased by 1 percent since last year. Bankruptcies filed in August have been in decline since 2010, until now. The article uses bankruptcy AACER filing statistics reported by Epiq Systems, which tracks nationwide trends in cases.
One of the interesting aspects of Epiq Systems’ website is that you can see the percentage of filings for Chapter 7 and Chapter 13 bankruptcy. Business filings under Chapter 11 are also listed on the website. This allows speculation on why people are filing. If we use Missouri as an example, 67 percent of cases filed were for Chapter 7.
Another interesting aspect of this website is that it shows you an interactive map of the United States. You can see firsthand which states have the most number of filings. As of August 1st, there were 528,397 bankruptcy filings since the start of the year.
Why Do People File for Bankruptcy?
People file for bankruptcy once debts become too numerous to handle. Medical bills, business debts, credit card debts, student loans and other types of consumer debts can overwhelm people. This can lead to wage garnishments, constant phone calls from collectors, foreclosure and repossession of property. Filing for bankruptcy may be the only reprieve from these consequences.
After filing for bankruptcy, an automatic stay is issued that temporarily halts collection attempts. Debtors are also given a chance to complete a court supervised repayment plan or to liquidate some assets to pay back creditors. After the case has been completed, debtors have a chance to pursue a fresh start on their finances.
The Kansas City bankruptcy attorneys at The Sader Law Firm can help people find solutions for managing excessive debt.