Following the last several years of the worst economic downturn in recent history, economists, commentators and financial experts have recently been heartened about prospects for economic growth and recovery as industries increasingly report better profits and the potential for new jobs with these increased revenues. Yet, even as the economy begins to emerge from its recent doldrums, many Americans remain buried in bills, job applications, and home and consumer debts. And unfortunately, many are likely to remain in debt with very few solutions other than facing and dealing with the prospect of insolvency.
And apparently now, the proof is in the pudding…and the staggering figures.
According to the Administrative Offices of the U.S. Courts, for the fiscal year ending June 30, 2010, over 1.5 million bankruptcy cases were filed in the United States. If you do the math, that’s one bankruptcy case every 20 seconds.
A representative for the courts wrote, “A total of 1,572,597 bankruptcy cases were filed in federal courts in that period, compared to 1,306,315 bankruptcy cases filed in the 12-month period ending June 30, 2009. This is the highest number of bankruptcy filings for any period since many of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect.”
These 2010 figures released last month mark a 20% increase in bankruptcy filings over the previous year’s already heightened levels, increases in the 40 to 50 percent range for areas in Arizona, Central California, and more. And with many of the bankruptcy filings in America involving married couples, sometimes multiplying the per-debtor bankruptcies figures, it’s apparent that more than two million Americans have chosen bankruptcy in the past fiscal year. This makes it realistic to say that there’s a bankruptcy every 15 seconds…tick tock.
Specifically, according to the figures, “Non-business filings for the 12-month period ending June 30, 2010 totaled 1,512,989, up 21 percent compared to the 1,251,294 non-business filings for June 30, 2009. Business filings totaled 59,608, up 8 percent from the 55,021filings reported in June 30, 2009.”
So what’s to blame for so many debtors becoming bankruptcy bound?
(1) Double-Digit Unemployment
Despite the perceived job growth occurring in many markets, unemployment remains in and around 10%. With nearly one in 10 Americans unable to find work, it’s difficult to pay mortgages, bills and pay down debts when creditors come calling.
(2) Foreclosure Fears
With many facing little or no assistance from banks and mortgage lenders in getting mortgages modified, many more are facing their fears of an imminent foreclosure. Without assistance Americans all across the country could lose their biggest assets right before their eyes.
(3) Aggressive Debt Collections
In the midst of new credit card laws meant to end unseemly consumer credit practices, it appears credit and medical debt collections are working harder than ever to squeeze money from desperate debtors.
Amid all of the challenges, debtors are turning to the sale harbors and debt relief solutions of bankruptcy. If you’ve been affected by the economy and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.