The following bankruptcy facts will show how, although many more consumers have decided to file bankruptcy, it's still a pretty drastic financial measure to get a "fresh start" and liberate yourself from overwhelming debt. Thus, always do your best to find an alternative to put your finances back on track. American consumers many times go bankrupt because it's their only way out of debt, but don't take it for granted that it's your only option, too.
Take a look at the following figures, give the situation a thought, and consider looking into debt options other than bankruptcy to begin your path to financial freedom.
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Why Are More People Filing?
Because, for millions of Americans, it truly is the only way out. According to the American bankruptcy Institute, more than 1.4 million consumer filed in 2009. That's a 32% increase from filings in 2008. Also, according to an annual survey of consumer-bankruptcy filers' demographics by the Institute for Financial Literacy, the profile of the average filer has switched to college graduates that can't find a job and professionals that lost their high paying jobs and can't live up to their means anymore.
Why Have Western States Been Affected The Most?
Mainly due to the crash in the housing market. California, Arizona and Nevada are among the most affected Western States. After housing prices soared and then collapsed, consumer bankruptcy filings rose twice as much as they did in the rest of the USA. Arizona presented the highest increase in filings (77% higher than in 2008) followed by Nevada, Wyoming, California and Utah. In terms of sheer volume, California recorded more than 205,000 filings. Finally, the highest per capita bankruptcy rate was in Nevada, with more than 11 filings for every 1,000 residents.
Although More People Are Filing, It's More Expensive And Complex Than What It Used To Be
Due to the new bankruptcy law, filing has become a more complex and expensive process. For example, fewer consumers are allowed to file under Chapter 7 and get "a fresh start". Instead, they must file under Chapter 13, which places them on a repayment plan that can last up to 5 years. Moreover lawyers' fees have gone up, and filers must pay for and attend credit counseling classes.
More People Are Filing, But It's Still a Traumatizing Experience
If Kmart and Donald Trump filed bankruptcy, so can you. It sounds easy, but it actually isn't. After all, you're not Kmart or Trump. You're a regular consumer struggling to make it to the end of the month before more bills start kicking in, and to file bankruptcy is still a hard decision to make. In a society in which youth, fame, and money are considered synonyms of success, having to go bankrupt makes many consumers feel ashamed. They feel as if they've failed in life and need to withdraw from the system so as to take a break before trying to make a comeback.
Money doesn't define your worth as a human being, but in a world in which the media bombards us with icons of wealth and success, this is easier said than done. Thus, bankruptcy filers are, may times, heartbroken because of having to file. In addition, they many times feel they've let their family down.
Try To Look For A Financial Alternative To Get Back On Your Feet
These bankruptcy facts reflect a harsh reality many consumers have to come to grips with, but that doesn't necessarily mean there's no other financial option for you. Debt settlement, credit counseling, and debt consolidation are simply three other debt options that might be available for you to pay off your debt.
If bankruptcy truly seems to be your only alternative, contact a Bankruptcy Attorney to go over your case in detail. If, on the other hand, there's still some hope for you, look into other financial alternatives that can come in handy. For instance, try contacting a reliable debt settlement company to explore other options to get out of debt.
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