The number of bankruptcy filings are on the rise across the country, signaling that Americans are struggling to keep up with their debt. The majority of the bankruptcy filings are in larger cities, where personal incomes are oftentimes not enough to pay household bills and daily living expenses.
According to the American Bankruptcy Institute (ABI), U.S. bankruptcy filings jumped by three percent in July 2019 from July 2018. A total of 64,283 filings were reported for July 2019, which is up from the 62,241 reported in July 2018. If this trend continues, the number of bankruptcies filed this year is anticipated to hit 796,000, which is more than the 777,000 reported last year.
Despite the upward trend, the total number of bankruptcy petitions filed by consumers and businesses nationwide is still well below where filings were during the Great Recession just ten years ago. The bankruptcy numbers are still on the rise, which shows that consumers are struggling to pay on their outstanding debts.
One issue causing this jump in bankruptcy filings has to do with the fact that incomes are not increasing with the cost of living expenses. While unemployment may be low, many consumers are still struggling to keep up with their monthly bills. As a result, many Americans resort to pay day loans and putting daily living expenses, like groceries and utility payments, on credit cards. Credit card debt has now exceeded the peak it reached in 2008.
Consumers are not the only ones feeling the heat when it comes to bankruptcies. In fact, many companies are also struggling and are seeking bankruptcy as an option to handle their debt. This trend has also triggered a series of job cuts across the country. It is estimated that 43,000 jobs were cut in the first seven months of 2019, according to a report from Challenger, Gray & Christmas. Many of these job losses are directly tied to the number of bankruptcies filed by U.S. companies.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.