Bankruptcy Filings Hit Pre-Recession Levels

Despite our sluggish economy and today’s disappointing jobs report, bankruptcies for businesses and individuals have reached pre-recession levels for the first half of 2012.

This year has been plagued with some large business bankruptcies which include Kodak, Houghton Mifflin Harcourt Publishers and Hostess Brands. Despite this, business bankruptcies fell 22 percent, reaching a low not seen since the financial crisis of 2008.

Individual bankruptcies also fell by 13 percent. In total, 601,184 consumers file for some type of debt-relief plan.

In a statement, Samuel J Gerdano, executive director of the Bankruptcy Institute said, “We are on pace for perhaps the lowest total new bankruptcies since before the financial crisis in 2008.”

While this is good news, it doesn’t imply that we are out of the woods economically. Unemployment is still a major concern and drives many people into financial insolvency. The burden of costly medical bills is also plaguing many Americans and the leading reason people must consult with a bankruptcy lawyer.

People don’t have to shoulder the burden of debt alone, they option of seeking relief from their creditors by hiring a bankruptcy attorney and filing for the appropriate bankruptcy plan.

Generally individuals enter Chapter 13 or Chapter 7 bankruptcy. Each of these debt-relief plans allows the filer to reduce their debts and stop collections. Chapter 13 allows the debtor to establish a re-payment plan with their creditors while Chapter 7 requires that any valuable assets be sold with the proceeds going to creditors.

Before making this crucial decision about your future, you should speak with a bankruptcy lawyer and allow them to look into your finances. With their help you can stop harassing phone calls and make a new start.