After peaking in 2010, Minnesota bankruptcy filings continue slight decline
Since the Great Recession took full effect in 2008, tens of thousands of Minnesotans have filed for bankruptcy.
Since the Great Recession took full effect in 2008, tens of thousands of Minnesotans have filed for bankruptcy. It took two years for the recession to reach its worst point by that measure in our northern state, with 22,070 individuals filing during the 2010 calendar year, according to data from the District of Minnesota United States Bankruptcy Court.
More recently, though, the state has seen a minimal decline in bankruptcies. In 2011, 19,196 people chose to declare bankruptcy. This year's December numbers aren't yet available, but based on comparing January to November for each time period, 2012 is on track to have slightly fewer filings.
While some experts believe this points to an overall trend towards better financial health for those living in Minnesota, there is a flip side to this story.
First, it's a small drop, and compared to the pre-recession numbers, residents are still struggling to contain housing, spending and other costs while often working in underpaying or part-time jobs. And the lower number could signal that families who really need to file for bankruptcy are avoiding doing so because societal pressures or the belief that eventually, they will be able to pay back their creditors.
Filing for bankruptcy can help you and your family gain control of your finances without losing your home or the majority of your property. Depending on your financial situation, your total assets, whether you own property and the types of creditors you owe, there is a chapter of bankruptcy that will best work for you and your family.
There are many misconceptions about the cost and effects of filing for bankruptcy that you should discuss with an experienced Minneapolis bankruptcy lawyer. These professionals can help guide you to the right type of bankruptcy so you can regain control of your finances and get back to your life.