Personal Bankruptcies Fall in 2012

Consumer bankruptcy filings decreased in 2012 according to statistics issued by the American Bankruptcy Institute. According to the Executive Director of the Institute, the number of 2012 filings translates to the lowest number since the U.S. recession began in 2008. The Director predicted that consumer bankruptcies would continue to fall in 2013. He attributed the fall to low interest rates and the tendency of Americans to reduce consumer spending. A related statistic from the American Bankers Association found that late payments on credit card accounts decreased to their lowest levels since 1994 in the third quarter of 2012.

California saw close to 142,000 Chapter 7 and 13 bankruptcy filings in 2012, a decrease of -1.23 per 1,000 individuals. California ranked ninth of all states in bankruptcy filings in 2012 based on per capita filings. Bankruptcy filings in the U.S. peaked in 2005. That year the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted which revised bankruptcy procedures. The Act resulted in increased filing fees, a means test for eligibility, the requirement of financial counseling programs, and an eight-year restriction on new filings for previous filers. The Act was legislated to prevent abuses of bankruptcy filings across the country.

Bankruptcy Representation in San Diego, California

Since the economic downturn began in 2008, millions of Americans have availed themselves of bankruptcy court protection and the elimination of unsecured debt through Chapter 7 and Chapter 13 filings. For many, filing for bankruptcy is a tough decision but one that is the most optimum solution for handling overwhelming debt and getting a fresh start. If you are in a severe financial crisis, whether from a job loss, reduction in hours or wages, investment failure, costly divorce, illness, or injury, you should seek legal advice about debt relief solutions which are suitable to you. Bankruptcy as well as other options should be explored.

At San Diego Bankruptcy Pros, the Law Office of Jon M. Cooper, you can work with a firm that is devoted primarily to debt relief and bankruptcy law. Getting the experienced and knowledgeable legal advice and guidance you need is the first step in changing your financial condition. The firm provides services with little to no money down; contact their offices for a free case consultation about your financial scene today.