Struggle to dump debt showing up in Arizona bankruptcy rates

On behalf of Ellett Law Offices , P.C. posted in 1. Personal Bankruptcy on Thursday, August 30, 2012
Over the last several months Phoenix has seen significant dips in the number of bankruptcies in the area. Most recently, it’s said that bankruptcies declined by 14 percent in July. But what does this actually mean for consumers and their attempts to eliminate debt? It’s important to know how the figures are compiled.
In the whole of Arizona, this 14 percent drop in July was one in a string of 18 consecutive months where bankruptcy rates have declined. These drops are based on a comparison to the rates for the same month year over year, so the 1,847 bankruptcies in Arizona this July are down 14 percent from the 2,153 bankruptcies in July 2011. In addition, the number of mortgage delinquencies fell by 21.1 percent for the state over the last year. At the same time, median home prices in the Maricopa and Pinal County areas have been ticking upward.
While these are certainly positive signs, analysts agree that consumers have a ways to go before they can be said to be flourishing. The experts note that it’s a tenuous recovery driven by banks tightening their standards for making loans and consumers remaining tight fisted in a bid to regain some stability.
The reality is that economic problems continue for many Phoenix area consumers still seeking to eliminate debt. These debts will keep posing a problem for many households. For these individuals, a personal bankruptcy option such as Chapter 7 or Chapter 13 may be helpful in setting finances straight and securing a stable financial future. And seeking advice from an experienced attorney about what may be the best approach to finally conquer outstanding debt may be a good first step.
Source: The Arizona Republic, “Phoenix-area bankruptcies fall 14%; 18th dip in a row,” Russ Wiles, Aug. 9, 2012
Tags: Chapter 13, Chapter 7, debt relief, personal bankruptcy