Chapter 7 bankruptcy filings decrease, but still persist

On behalf of Ellett Law Offices , P.C. posted in 1. Chapter 7 on Wednesday, May 23, 2012
As the economic conditions and financial situations in Phoenix and across the state begin to improve, the number of bankruptcy filings seen in Arizona is on the decline. While this spells good news for many, there are still those who find themselves in need of debt relief assistance. In fact, despite the decline in overall filings, Chapter 7 bankruptcy filings still comprise 87 percent of all bankruptcies in the Phoenix area.
Figures from the local U.S. Bankruptcy Court indicate that in the Phoenix area alone, bankruptcy filings fell 27 percent from 2,748 in April of 2011 to 1,999 filings reported for April of this year. In the first four months of this year compared to the first four months of 2011, filings have seen a drop of 25 percent. Analysts also find that as economic conditions improve, more lenders appear to be making more loans.
Financial trend watchers say that overall the first quarter of 2012 has been a good one for consumers. Still, many continue to face hard times and filing for bankruptcy remains an important possible protection for some whose debts far outstrip their incomes. Whether it is the right option depends on the situation and is something that can be best determined with the help of an experienced attorney.
While some may fear that the complications of filing bankruptcy are too great to face, the reality is that when financial situations become dire, bankruptcy may be the most effective response to recover from the difficulties that have been created by circumstances that most often are beyond our control.
Source: The Arizona Republic, “Phoenix-area bankruptcy filings decline in April,” Russ Wiles, May 7, 2012
Tags: Chapter 7, personal bankruptcy