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Bankruptcy filings down, but thousands still seek protection

Signs that Minnesota is continuing to emerge from the national recession were clear throughout 2012.

Signs that Minnesota is continuing to emerge from the national recession were clear throughout 2012: jobs were added, the economy grew and home sales increased.

As part of these upward trends, there have been downward turns in the so-called negative aspects of the economy. A report from the Administrative Office of U.S. Courts, released on February 4, showed that bankruptcy filings were lower nationwide over the past year, when compared with 2011.

Through the calendar year, 1,221,091 individuals and businesses filed for some form of bankruptcy protection, down from 1,410,653 in 2011. This difference represents about a 13 percent decline overall.

However, the news isn’t all good. Of the more than 1 million filings in the United States last year, only 40,075 were corporate in nature. The overwhelming majority were individuals seeking bankruptcy protection: 1,181,016 in total.

In Minnesota, numbers similarly decreased, right in line with the national average. Just 16,998 cases were filed in the state, a 12.3 percent decline from 2011.

Though it’s certainly a positive development that fewer Minnesota families need to file for bankruptcy, it’s important that residents know how this protection can help them. If you’re struggling financially, bankruptcy may be able to put you in a better situation overall than if you were to try to repay your debts independently. By waiting it out and continuing to miss payments, you could actually hurt your credit score and other prospects more than seeking protection.

An experienced Minnesota bankruptcy lawyer can help you determine what the cost of bankruptcy is, which type of filing would be most beneficial to you and how you and your family can stop creditors calling for good. The professionals at Atlas Law Firm are here to help, so contact us today.

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