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State by state bankruptcy statistics, 2005-2011: Interactive map shows Chapter 7, Chapter 11 filings by state, jurisdiction

July 18, 2011 Comments off

State by state bankruptcy statistics, 2005-2011: Interactive map shows Chapter 7, Chapter 11 filings by state, jurisdiction
Source: CreditCards.com

Consumer bankruptcy filings have continued their downward march for the first half of 2011, but it doesn’t necessarily mean the economy is turning around. In fact, the dip in bankruptcies may reflect the opposite: Unemployed people are too broke to file.

The numbers at first glance seem encouraging: Bankruptcy filings fell by 8 percent in the first six months of 2011 compared to the first six months of last year.

But Jean Braucher, a law professor at the University of Arizona, says, “Oddly enough, if you see a jump (in filings), things are actually getting better.”

Some of the 14 million Americans who are currently unemployed may need to continue to run up their debt simply to survive. So they hold off filing for bankruptcy until they land a job, Braucher says.

Henry Sommer, a Philadelphia attorney who is the former president of the National Association of Consumer Bankruptcy Attorneys, agrees. Many experts see bankruptcy as a lagging indicator. “People tend to file when they go back to work,” he says.

Often they can’t afford to file before that time because they don’t have the cash to pay filing costs and attorney’s fees, Sommer says.

Categories: business and economics, consumer issues, CreditCards.com, legal and law enforcement
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