Drop in Bankruptcy Filings Signs of Improved Economy

Consumers are considering options outside of bankruptcy for confronting their debt management problems. According to the American Bankruptcy Institute, the number of bankruptcies filed nationally declined 14 percent from the year-earlier period. There were 921,219 bankruptcies filed nationally through September.  These numbers may seem high, but at this rate of decline the year-end totals stand to be the lowest since before the financial crisis in 2008.

The region also reported a decrease in new case filings. The U.S. Bankruptcy Court for the Middle District of Pennsylvania showed a decreased by 14.7 percent through the first three-quarters of the year, compared to the same period in 2011.  Court data shows filings in the court’s Wilkes-Barre office decreased by 12.3 percent during the same period.  Experts say that although the pace is slower than earlier in the year, it is a sign that the economy is stabilizing.

Several factors will contribute to the continuing decrease in regional bankruptcies through the rest of the year. These may include:

• An improving real estate atmosphere, including mortgage and loan refinancing, home sales and new construction
• Low interest rates and muted consumer spending
• Proactive loan modifications by mortgage lenders

At Harold Shepley & Associates, LLC, we understand that bankruptcy may not be your only option for financial recovery.  Some other strategies include:

• Debt negation. A successful negotiation is an effective method to get you out of debt without filing bankruptcy. You can restore your credit to an acceptable score.
• Mortgage foreclosure defense. Often your lender will accept lower monthly payments and extend the term of your loan rather than initiating foreclosure procedures.
• Litigation defense. Consumers have rights that are protected by law. If you have been victimized by the credit industry or if a lender sued you, contact our law firm.
• Credit Restoration. Whatever debt you pursue, your credit can always be improved.

Our experienced attorneys will help you determine the best course of action for debt management.

By Harold Shepley | Published June 18, 2013 | Posted in Bankruptcy, Debt | Tagged bankruptcy, debt management, financial recovery, Pennsylvania debt relief attorneys | Leave a comment