Bankruptcy filings continue to increase

On Behalf of | Jul 2, 2024 | Bankruptcy

When you’re struggling with overwhelming debt, it can feel like you’re alone, fighting an insurmountable battle in isolation. But millions of Americans find themselves on uncertain financial footing as they grapple with their debt. And in fact, many of them end up seeking bankruptcy protections.

According to the federal courts that handle bankruptcy cases, 2023 saw more than a 16% increase in personal bankruptcy filings compared to 2022. That’s an increase from approximately 380,000 filings to nearly 453,000. And that rate of increase has continued into 2024, highlighting just how prevalent financial woes are in America.

Why are bankruptcy filings on the rise?

There are several contributing factors. Some think that the runoff of stimulus funds and higher interest rates have played a role, while others attribute the increase in bankruptcy filings to higher amounts of household debt. Medical debt continues to play a significant role, too, with many individuals struggling to claw free of it when they or a family member are hit with an unexpected medical condition.

What do these increased filing rates mean for you?

It means that you’re not alone in your fight against crushing debt. Each year, hundreds of thousands of individuals decide to seek bankruptcy protection, which is something you might want to consider, too. After all, so many people file for bankruptcy to take advantage of the benefits offered by the system, which includes shedding debt, stopping foreclosure, and securing a fresh financial start.

Do you want to learn more about personal bankruptcy?

Personal bankruptcy may give you the new lease on life that you want. If you want to lift the burden of oppressive debt from your shoulders, then now is the time to read up on the process, what it takes to meet eligibility requirements, and how you can position yourself for success. By doing so, you’ll hopefully set yourself on a path toward the future you want for yourself and your family.

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