Although many don’t like to talk about it, personal bankruptcy is not all that uncommon here in Florida. Although some feel it carries a stigma, you would be surprised to hear of the number of your friends and neighbors who have chosen this opportunity to get a fresh start.
In the last decade, the real estate crash and, most recently, the COVID-19 pandemic placed undue pressure on many who simply found themselves trapped by circumstance.
Filing for personal bankruptcy does not mean you are a deadbeat or a bad person. Instead, it merely indicates that you found yourself in a situation – whether due to job loss or market crashes – that you needed assistance to recover from.
Remember, this is why bankruptcy exists in the first place.
Some are reluctant to pursue personal bankruptcy, and this may be prudent. The process will have serious repercussions on your credit.
But if you find yourself in an impossible situation and need debt relief, we thought you might be interested in learning some of the statistics surrounding this topic so that you can know that you are not alone.
Personal Bankruptcy Facts – 2019/2020
The most recent year we have complete statistics for is 2019.
752,160 cases of personal bankruptcy were filed in that year. Tennessee had the highest individual bankruptcy rate in the US, with Mississippi in second place. Alaska and Vermont had the fewest cases of personal bankruptcy.
Preliminary numbers indicate that approximately 420,000 Americans filed for personal bankruptcy in 2020. While it may seem surprising that the number dropped significantly in such a challenging year, the fallout from the lockdowns and closures is likely yet to be reported. Many utility companies, credit card companies, and other creditors have offered their own debt relief programs to get through the crisis.
As we proceed into 2021, we are likely to see the pandemic’s real financial effects.
It is also likely that discretionary spending, such as entertainment, dining, and traveling, was way down this year, allowing people to save more money and pay more towards their debt.
Filing Personal Bankruptcy
There is no shame in exercising your rights. If you are interested in learning more about how personal bankruptcy can help you with the debt relief you need in 2021, call the law firm of Sarasota bankruptcy attorney Richard V. Ellis.
Our family-owned practice is happy to help you navigate the process, get your debt under control, and get you started on your new chapter.