Filing for bankruptcy and thinking you’re alone? Think again, dear reader. It’s almost as if a huge gap opened in the earth’s crust and swallowed up the world; total bankruptcy filings in the United States increased 32 percent in 2009 over calendar year 2008, according to data released from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,473,675 for the 12-month period ending December 31, 2009.
The numbers don’t lie, but what’s even worse is when you slice Chapter 7 consumer bankruptcy cases out of it. There were a whopping 1,008,870 consumer Chapter 7 bankruptcy cases filed during this period, representing a 41 percent increase over last year.
Let me give you a point of reference. There are about 1.4 million people in the Bronx.
It’s as if everyone in the Bronx filed for bankruptcy in 2009. Everyone.
That’s a lot of people.
What does this mean to you? It means you’re probably going to have to wait longer to see a bankruptcy lawyer. You’ll also likely sit and wait longer for the trustee to call your name at the meeting of creditors. But beyond that, it means that people are realizing that filing for bankruptcy isn’t the end of the world and that life does, indeed, go on.
Looking to the wider economy, the chances of credit after bankruptcy are going to improve markedly, as lenders are confronted with the prospect of either lending to people right after filing for bankruptcy or not lending at all. Of course, the latter isn’t really an option – lenders have to lender or they don’t make any money.
But in the end, the real issue is one of whether it’s right for you to file for bankruptcy – not whether your should follow the crowd. Speaking with an experienced attorney is the only way to know for sure.
Thanks to ACA International for pointing out this post.
What a cool photo of Manhattan – courtesy of Wikimedia Commons.
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