Bankruptcy is Common, and Increasing in These Tough Times
A November 2008 New York Times headline summarized the current situation for many people across the U.S.A. this way: "Bankruptcies Rise as Economy Tanks." Bankruptcy continues to rise in 2010 in every state including Arizona. Bankruptcy filings are not a new phenomenon but they are more common as job losses mount. More jobs have been lost than at any time since the Great Depression and continue to rise every day.
If you are struggling financially and are thinking about a visit to an attorney who can help, you know you are not alone, but it may offer more perspective to know some actual bankruptcy and economic statistics.
On An Average Business Day, Nearly 5,000 People and Businesses File Bankruptcy
- Bankruptcy filings nationwide totaled over 108,000 in October 2008.
- That translates to over 4,900 bankruptcy filings per day, and an increase of almost 34 percent over October 2007.
- Bankruptcies have been on a steady curve upward since late 2007 and continue to increase since the all-time peak in October 2005, when a rush to file occurred in anticipation of a new law.
A Steep Upward Trend Has Taken Hold Once Again
- The new law, called the Bankruptcy Abuse Prevention and Consumer Protection Act, created a rush to file and an all-time record: over 2 Million individuals, couples and businesses filed bankruptcy in 2005. Over 40,000 of those filings were in Arizona.
- According to statistics published by the U.S. Courts, there were 967,831 bankruptcy filings in the U.S. from July 1, 2007 through June 30, 2008 including 14,301 in Arizona.
The Current Recession is Hitting Arizona Hard
Data published by the University of Arizona Economic and Business Research Center includes:
- Statewide, seasonally adjusted unemployment rose from 3.9 percent to 5.9 percent from April 2008 to September 2008.
- In the Phoenix-Mesa area, unemployment rose over 67 percent from September 2007 to September 2008, to over 114,000.
- For that same period, housing permits declined over 47 percent
According to a separate report by RealtyTrac Inc., Arizona had the second-highest home foreclosure rate in the nation in October 2008.
A Lawyer Who Can Help is One Call Away
Although some of these numbers may include you, you will not be treated as a statistic at the Phoenix, Arizona area Law Offices of Gukeisen Law Group, P.C.. For caring, helpful counsel about Chapter 7, Chapter 13, or Chapter 11 bankruptcy including strategies for foreclosure defense or avoiding a bankruptcy filing please contact us today.
