Bankruptcy in Chicago Increased In 2010 Compared to 2009

10-Jan-2011 It was recenlty reported that 2010 saw the number of bankruptcy filings increase by 10% over what was reported in 2009 in Illinois. This makes Illinois among the top 14 states who saw bankruptcy filings increase. The number one state to increase was Hawaii with a 22% increase followed by Utah and California each with a 19% and Arizona with an 18% increase over 2010.

The next highest was Colorado with 14% and then Florida and Wyoming each with 13%. Maryland and New Jersey were up 12% and Alaska, Massachusetts and Montana all increased 11%.

Illinios was tied with Connecticut both reporting a 10% increase. This puts Illinois just slightly ahead of the National increase of 9%.

Some states actually saw bankruptcy filings decrease in 2010. West Virginia's bankruptcy filings decreased 10% and Tennessee saw an 8% drop.

It is projected that 2011 should see as much as a 10% decrease in bankruptcy filings across the nation.

The decline is bankruptcy filings is more than just a sign that the economy is improving. In fact it actually offers no evidence economic improvement. The bulk of the decrease can be attributed to the decline in debts taken on by americans in the past 3 years. When people take on less debt the incentive of bankruptcy and discharging your debt decreases.

The anticipated decline in bankruptcy filings is also expected to come from the more lenient lending practices. This means that when things get tight consumers will be able to borrow the money they need to avoid bankruptcy.

An anticipated decline in unemployment rates may also help with the decline in filings in 2011.

If you find yourself considering bankruptcy it is best to consult with a bankruptcy attorney early on. This can potentially save you from filing bankruptcy especially as more options become available to those struggling financially.

Chang and Carlin
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