Fewer Bankruptcies, But Many Still Struggle

In the United States in the summer of 2015, bankruptcy filings are declining. According to the American Bankruptcy Institute (ABI), credit card debt, a leading cause of personal bankruptcies, is at the lowest level since 2006. Last year, the overall number of bankruptcies was lower than in any year since 2007. Consumer debts from credit cards, auto loans, and student loans, but not mortgages, are the leading causes of bankruptcy in 2015. In the Chicago area, if your debts are mounting and you’re thinking about bankruptcy, discuss your circumstances at once with an experienced Chicago bankruptcy lawyer.

Student loans are behind the biggest recent jump in debt, and student loans are almost never dischargeable through bankruptcy. In fact, delinquent student loan debt has nearly doubled since 2009, while delinquent credit card debt is at about half of its 2009 level. In 2014 there were 936,795 new bankruptcy filings in the United States, a 12.6 percent decline from 2013. Since 2010, bankruptcies have dropped by more than 20 percent in every state. ABI estimates about 840,000 new bankruptcies in 2015, a decline of about 10 percent.

When you are buried in debts and you don’t see any way out, bankruptcy may or may not be the best alternative. If you are facing a mountain of debt that keeps getting higher, you need to know that bankruptcy is confusing, aggravating, and difficult. If it’s your first bankruptcy, don’t be intimidated. A good Chicago bankruptcy lawyer can address your concerns, answer your questions, and help you through every step of the bankruptcy procedure in Illinois. Again, bankruptcy isn’t for everyone who’s struggling, but if you are in or near Chicago and your debts are spiraling out of control, speak as quickly as possible with an experienced Chicago bankruptcy lawyer who can explain bankruptcy and your other options for dealing with out-of-control debt. Don’t wait to make the call.