A Look At How 2016 Ended As Far As Bankruptcy Filing Volume

When you bring home less money than you have to pay out each month for your bills, a devastating financial impact can be felt. It is no fun to have less cash than is needed to pay for the things you need, but there are ways you can improve your cash flow without waiting for the boss to give you a raise. One thing you can do is to consolidate your debts into one lump sum payment per month, at a lower average rate than what you pay on each individual debt. You can also negotiate with your creditors for lower interest rates or more manageable repayment amounts, or see if your mortgage lender will rewrite your mortgage loan. Another option is to file for bankruptcy, which will either eliminate your debt all together, or at least significantly reduce what you owe. One thing to keep in mind when deciding to file for bankruptcy though is that if you have things you want to keep, like your car or house, you will still have to make the monthly payment for those things. It is also good to know that depending on your income and the amount of secured debt you have, you may not get to eliminate all of your unsecured debt (like high interest rate credit cards).

The inability to wipe out credit card debt is disappointing to many people who are contemplating filing for bankruptcy, and might account for the decreased number of bankruptcy filings in 2016. Overall, here is how the year ended for bankruptcy filing volume: 

•           Business filings were up by 26% in November 2016, from the report at the end of November 2015.

•               The number of individual cases for 2016 decreased by 6% from the previous year.

This data may or may not illustrate a trend, as the economy is still in a state of flux. With the election of Donald Trump came a lot of worry and concern, and many times that worry and concern plays itself out in the financial markets. But because President Trump’s presidency is too new, it is also too soon to tell if there will be any lasting impact on your bottom dollar. It is also safe to presume that as more businesses look to bankruptcy as a way out of financial trouble, the number of consumer filings will increase. This is because when a company is in trouble, those hit first are usually the employees. This could be in the form of layoff or firings, or even a cut back in hours worked or pay scale. If this happens, it is not a far stretch of the imagination to think that consumers will soon need financial relief. For many, this relief can come in the form of bankruptcy. If you are having a hard time keeping up with all of your bills, you should consider filing for bankruptcy. The benefits can last a lifetime, as you eliminate or reduce debt in a way that lets you free up your funds to save for an emergency or to pay other obligations.

For more information about bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.