Over the course of the last few years individuals throughout the country, including those in the state of Pennsylvania, have faced financial difficulties. These difficulties were due to things such as job loss and a reduction in the value in homes that residents live in. The combination of these factors along with others, left many drowning in debt and unsure where to turn. Some people resolved their financial issues by filing for bankruptcy.
According to a recent forecast regarding bankruptcy expectations throughout the remainder of the year, the number of people choosing that option is decreasing. As compared to 2012, the total number of personal bankruptcies in 2013 is expected to fall by between 13 and 15 percent. The forecast was provided by Fitch. This is expected be the third time in the last 20 years that the number of personal bankruptcies filed is below one million.
According to the individual who wrote the report, there are multiple reasons for the decrease. These reasons include:
- A better job market
- Higher home prices
- An increase in personal income
Despite what appears to be an improving U.S. economy, there will likely still be many individuals who are in over their heads and looking for debt solutions. Those individuals would likely benefit from speaking with a lawyer who handles bankruptcy cases. He or she should be able to let people facing debt they cannot handle know what their options are. Depending on one’s circumstances it is possible that a consumer could be eligible for Chapter 7 or Chapter 13 bankruptcy. Though each takes a different path, at the end they both help to provide debt relief.
Source: Financial Times, “Dip in US bankruptcy rate aids investors,” Stephen Foley, Aug. 5, 2013