The most common feelings of those who are in a difficult financial situation are a sense of being stranded, trapped, and alone. If you’re struggling to make debt payments on time, the truth is that you are not alone. Each year, thousands of U.S. citizens file for bankruptcy because of debts they will never be able to repay. The social stigma that may linger around bankruptcy today doesn’t take into account the fact that it is actually a vital part of a balanced economy.
The process of bankruptcy is designed to bring those feeling alone with their debts out of their financial stress so they can again become active, participating members of the economy. Behm Law Group Ltd. attorneys work with clients in diverse financial and personal situations, providing legal guidance and protection throughout the process of filing for bankruptcy in Jackson, MN, and the surrounding area.
While it may not seem so to some individuals, many, many people find long-term debt relief through bankruptcy each year. Many of our clients don’t know anyone else in their lives who have experienced it, which is a large part of why they may feel the process is daunting. However, because many are ashamed for having had to file for debt relief, it is not something that they readily share with other people. It is quite likely that you interact with many people every day, including relatives, who have had to file for relief.
Demographics and other statistics of individual and business bankruptcy filings are reported annually. For the duration of 2021, the effects of the 2020 COVID-19 pandemic on bankruptcy rates can only be projected for now, but all recent reports in the past year tell us that there is no single demographic that never reports cases. This means cases are filed from all demographics regardless of age, marital status, ethnic background, property ownership, or types of debt.
When looking at the averages of that broad range of demographics, the individual and businesses filers look something like the following based on available 2020 reports:
Total bankruptcy cases: 544,463
Total Chapter 7 filings: 381,217
Total Chapter 13 filings: 154,341
Total Chapter 11 filings: 8,113
Total individual bankruptcy cases: 522,808
Total individual Chapter 7 filings: 369,020
Total individual Chapter 13 filings: 153,236
Total business bankruptcy cases: 21,655
Total business Chapter 7 filings: 12,197
Total business Chapter 13 filings: 1,105
Total business Chapter 11 filings: 7,561
This means the most commonly filed cases were Chapter 7 liquidation at 70.02%; the next most common of Chapter 13 reorganization drops to 28.35%, and finally, Chapter 11 reorganization drops to 1.49% (some additional uncommon chapters totaled to 0.14%).
While no demographic group is exempt from having to file for bankruptcy relief, there are ways to target which regions have the most cases each year. For 2020, the states that topped the list are mostly in the U.S. Southeast, including Alabama, Georgia, Mississippi, Arkansas, Kentucky, and Tennessee.
These averages can give you an idea about who files for bankruptcy, but the truth is that people and businesses of all kinds file. To learn more about the benefits of bankruptcy in Jackson, MN, contact Behm Law Group Ltd. by calling (507) 387-7200 or by emailing stephen@mankatobankruptcy.com.
