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Low bankruptcy filing rates could indicate trouble

Although some South Carolina residents have struggled through challenging economic times in recent years, they may be encouraged by economic news showing that bankruptcy filings have diminished, reaching their lowest levels across the country for the last 10 years. However, there could be indicators that filings will climb again in the near future based on the data recorded for the most recent year. Statistics show that the one-year decline for the period ending in September of 2017 was the lowest annual decrease in bankruptcy filings for the last 10 years.

Financial difficulty at large can be measured in one respect by the number of bankruptcy filings in a period of time. However, experts use other measures to evaluate the economic well-being of the nation as well. Another factor to consider related to bankruptcy is the rate of increase or decrease in filings. As the rate of decline slows, there is a risk of the trend changing directions. Another mitigating factor that is notable is the potential for interest rates to increase. This could similarly impact the financial health of individuals, which could translate into an increase in bankruptcy cases.

An analysis of the statistics for the most recent year's bankruptcy filings shows that the vast majority of cases were not business related. Chapter 7 and Chapter 13 filings represent approximately 95 percent of the bankruptcy cases for the period in question. There is also concern that bankruptcy cases could rise in the coming year because of the difficulties caused by weather events in recent months.

People who are facing serious financial challenges because of a major life event might wonder about the best option for regaining their financial footing. Bankruptcy is an option that warrants careful consideration. Legal counsel may be helpful in determining what type of bankruptcy is most appropriate for an individual's situation.

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The Huggins Law Firm, PA

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