Bankruptcy Facts - Even Though More People Are Filing, Try To Find An Alternative To Pay Off Your Debt

The following bankruptcy facts prove two main points: 1) more consumers are filing bankruptcy; and 2) its still a drastic measure to get a fresh start

. Although statistics show more people have filed bankruptcy in 2009, there are still clear signs that choosing this debt option is disheartening for many consumers who, overall, feel theyve failed in life and let their family down. Always keep in mind that, even though millions of Americans go bankrupt every year, there might be other debt options to put your finances back on track. Take a look at the following figures, give the situation a thought, and consider looking into alternatives other than bankruptcy to begin on your path to financial freedom. Why Are More Consumers Choosing To File Bankruptcy? Because for millions of Americans, its the only chance to get a fresh start. The economy has been rough on many people, and sometimes, depending on the consumer's case, other financial options to get out of the hole arent really available. According to the American bankruptcy Institute, more than 1.4 million people filed in 2009 (a 32% increase from filings in 2008). In addition, according to an annual survey by the Institute for Financial Literacy, the profile of the average bankruptcy filer switched from working class people with little income to college graduates that cant find a job and professionals that lost their high paying positions and cant live up to their means anymore. Who Has Been Affected The Most? Western States, especially Arizona, Nevada, and California. The reason behind this is mainly the crash of the housing market. After housing prices escalated and then dropped, consumer bankruptcy filings rose twice as much as they did in the rest of the country. Some more figures: California recorded more than 205,000 filings. Arizona presented the highest increase in filings (77% higher than in 2008) Nevada had the highest per capita bankruptcy rate, with more than 11 filings for every 1,000 residents. Although More People Are Filing, Its More Complex And Expensive Than What It Used To Be The new bankruptcy law that went into effect in October, 2005, brought with it major changes to the process of filing bankruptcy, making it more complex and expensive. For example, fewer consumers are allowed to file under Chapter 7 and get a fresh start. Instead, they must file under Chapter 13 and complete a repayment plan. Among other changes due to the new law is the fact that lawyers' fees have gone up and filers must pay and attend credit counseling classes. Even Though More People Are Filing, Its Still a Grieving Experience Filing bankruptcy is easier said than done. In todays hectic society, being young, rich, and famous are three main values many consumers feel the pressure to follow. And even if we dont believe in them, were bombarded everyday by images on the media promoting them. As a result, many consumers find it hard to cope with filing bankruptcy because, deep inside, they feel like theyve failed in life. The need to withdraw from the system in order to get a break and start all over again can be daunting, especially when you have a family to take care of. Therefore, the fact that there are more people filing bankruptcy than before doesnt make it any easier to digest. Try To Find A Different Debt Option To Pay Off Your Debt The previous bankruptcy facts make it clear that, although more consumers have decided to go bankrupt, its still a traumatizing experience. Moreover, due to the new law, filing has become a more complex and expensive process. Thus, I advise you to look into your finances and research diverse financial alternatives to get back on your feet. You might feel desperate and believe bankruptcy is your only way out, but it may not. It might just be the more obvious. However, many times we overlook solutions we didnt think we could afford to take a chance on. But take a better look: perhaps theres a financial alternative waiting around the corner. Maybe you didnt even think of debt settlement, credit counseling, or debt consolidation as your possible way out of debt, and perhaps theyre not. But maybe theyre an opportunity worth exploring. After all, it cant hurt to learn more about them. Knowledge is power, so do your research and be in control of your finances today.

Bankruptcy Facts - Even Though More People Are Filing, Try To Find An Alternative To Pay Off Your Debt

By: John M. Stevens

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