Greensboro Bankruptcy Rates Are Pretty Low – But Could Rise Soon – Here’s Why

Greensboro Bankruptcy Filing Rate Is Low – But Could Rise Soon – Here’s Why

Submitted by Rachel R on Wed, 07/19/2017 - 10:01am

Greensboro Bankruptcy Filing Rate Is Low – But Could Rise Soon – Here’s Why

Bankruptcy filing rates are low in Greensboro now, but that could change soon

Image Source: Pixabay.com

Bankruptcy filing rates across the U.S. are pretty low right now, including in Greensboro, North Carolina. However, given the debt trends occurring, could increase over the next couple of years and beyond. Here’s a look at some research and insight on why bankruptcy rates are lower right now but poised to climb in coming years – plus some tips on how you can protect yourself from going insolvent.

Research Shows Bankruptcy Filings Are at All-Time Lows 

Data compiled by Credit Slips show that bankruptcy in Greensboro, North Carolina and all across America is at an average of 2.38 per 1,000 people, which is quite low. Filings hit a high in 2005 when more than 2 million Americans filed for some form of bankruptcy. That was also the same year that the bankruptcy code was revamped and became more restrictive.

Many consumers that were on the fence about filing bankruptcy in 2005 rushed to do so before the stricter requirements came into play. The following year, bankruptcy filings plummeted unnaturally because of the new law. After that, filings began climbing again and spiked at more than 1.5 million filings in 2010 because of the recession that hit hard in 2008.

Bankruptcy Filings Have Been Falling Since 2010

After the fallout from the recession, Greensboro and other U.S. bankruptcy filings began to whittle down each successive year from the recent high in 2010. In 2011, consumer bankruptcy dropped slightly to a little less than 1.4 million filings and in 2012, dropped to just under 1.2 million. The following year saw a drop to just over one million, and by 2014, petitions had dropped to just over 900,000.

As we hit 2015, U.S. consumer bankruptcy was at 819,000 and in 2016 filings were at just over 770,000. Consumer bankruptcy filings for 2017 are expected to be close to the same level as last year. But next year and in the coming few years, experts believe a resurgence in bankruptcy petitions is coming soon. Why? It’s all about the skyrocketing levels of consumer debt.

Debt Comes First, Bankruptcy Follows 

Consumer debt in Greensboro, North Carolina and all across the country is on the rise. U.S. consumer debt is at an all-time high. All types of credit are on the rise from credit cards to student loans and from car loans to personal loans. When people tap credit lines and get into debt in increasing amounts, the result is that some people will get in over their heads and go delinquent on their debt.

However, bankruptcy rates will remain low for a while because debt hasn’t increased enough yet to become problematic for the majority of Americans. If you’re a Greensboro consumer that is getting deeper and deeper into debt, it might be time to ask yourself whether you can afford the debt you’re adopting and if it’s time to try and get it under control before it begins to control you.

Can You Bankruptcy-Proof Your Life? 

The short answer is no. There’s no way to ensure you won’t need to file Greensboro bankruptcy at some point in your life. Bankruptcy is an option for those with extreme debt, but most people that need to resort to bankruptcy didn’t get there through overspending or poor financial habits. Overspending and bad money habits don’t help, but most bankruptcies result from unavoidable life events.

For instance, if you divorce, lose your job, have an accident or illness that keeps you out of work, your finances can go bad quickly. This can happen even if you saved for a rainy day, worked hard, and avoided excessive debt. You can be financially responsible, and an unforeseen life event can eradicate your planning and leave you with unmanageable debt.

The good news is that Greensboro bankruptcy is there as a fallback option if your debt gets out of control. With debt in America on the rise, it’s inevitable that bankruptcy filings will eventually begin to climb again. If you find yourself in over your head with debt, it pays to find out all your options for debt relief so you can make an informed decision about your financial future.

Contact the Law Offices of John T. Orcutt. Call +1-833-627-0115 now for a free Greensboro bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro or Wilmington.

Debts Hurt! Got debt? Need help? Get started below!

Serving All of North Carolina

  • Bankruptcy Attorney Fayetteville NC
  • Bankruptcy Attorney Durham NC
  • Bankruptcy Attorneys Wilson NC
  • Bankruptcy Attorneys Greensboro NC
  • Bankruptcy Attorneys Southport NC
  • Bankruptcy Attorneys Wilmington NC

Bankruptcy Attorneys Raleigh NC (North)

6616 Six Forks Rd #203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

Bankruptcy Attorneys Raleigh NC (North)

Bankruptcy Attorney Fayetteville NC

2711 Breezewood Ave Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Bankruptcy Attorney Fayetteville NC

Bankruptcy Attorney Durham NC

1738 Hillandale Rd Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Bankruptcy Attorney Durham NC

Bankruptcy Attorneys Wilson NC

2215 Nash St N Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Bankruptcy Attorneys Wilson NC

Bankruptcy Attorneys Greensboro NC

2100 W Cornwallis Dr. STE O Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Bankruptcy Attorneys Greensboro NC

Bankruptcy Attorneys Southport NC

116 N Howe St. Suite A Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Bankruptcy Attorneys Southport NC

Bankruptcy Attorneys Wilmington NC

116 N. Howe Street, Suite A Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Bankruptcy Attorneys Wilmington NC