If you are considering bankruptcy, it is pivotal to thoroughly review all of your options and make sure that you pinpoint the best course of action given your individual circumstances. When it comes to bankruptcy and other financial matters, everyone is in a unique position and you need to focus on the long-term impact of the decisions you make.
Bankruptcy helps people find financial freedom, but some people are hesitant to move forward with a petition because of the negative stigma surrounding bankruptcy. Reviewing data on bankruptcy helps shed light on the prevalence of filings and allows filers to know that they are not alone.
How many people file for bankruptcy each year?
The U.S. Courts sheds light on the number of bankruptcy filings each year. According to their data, more than 659,000 non-business bankruptcy filings and over 22,000 business-related bankruptcy filings occurred during a 12-month period ending on June 30, 2020. This represents a decline in comparison to the 12-month period ending in June 2019, especially for non-business bankruptcies.
What is the most common type of bankruptcy?
The U.S. Courts reports that in the 12-year period ending in June 2020, more people filed for Chapter 7 bankruptcy (436,919) than any other type of bankruptcy. Over 237,000 people filed for Chapter 13, more than 7,000 filed for Chapter 11 and over 500 filed for Chapter 12.
It is important to weigh your options and determine which type of bankruptcy best suits your needs. Moreover, make sure you recognize that many people are in your position and do not feel ashamed filing for bankruptcy.