When people in California are facing financial difficulties, it can feel as though they are the only ones with such problems. However, they may be surprised to know that there will be as many as 980,000 filings of a personal bankruptcy by people across the nation this year. That number is slightly lower than were filed last year.
A personal bankruptcy is most often filed by people in California when they find that they are unable to prepay the debts that they owe. In many cases, these bankruptcy cases, once completed can bring financial relief to those who need help. In fact, many unsecured debts can be discharged in some bankruptcy cases, freeing the person that sought the bankruptcy of the debts that may have been overwhelming.
For most of our nation's recent history, the bankruptcy filing rate has climbed each year. It has fallen only three times in the past 20 years. This year is one of those three, thanks in part to a slowly improving economy and the continuing efforts of many to bring debts down. These actions may have begun during the most recent economic recession that caused people to have to tighten their financial belts as home values fell and jobs were lost.
Though filing for a personal bankruptcy is not the first choice for many people in California, it is often the best one. That is because of the ability to restart economic lives once the action is complete. This allows people to begin new businesses and save money, benefitting all in our state.
Source: ft.com, "Dip in US bankruptcy rate aids investors," Stephan Foley, Aug. 5, 2013