The American Bankruptcy Institute and Epiq Systems have just released a report detailing the number of bankruptcy cases for the first half of 2012. And the results are good, suggesting an economy that is stabilizing. The combined filings of individuals and businesses have dropped by 14%, settling at the lowest level since 2007.
Filing for Bankruptcy Decreases
The numbers can be slightly deceiving, however. Business bankruptcy has decreased by 22%, while the number of individuals filing for bankruptcy has only decreased by 13%. The American Bankruptcy Institute’s figure of 14% represents a combination of the 632,130 cases.
The fact that fewer individuals are filing for bankruptcy could indicate a healthier economy. However, the figure doesn’t necessarily represent an improvement across the board in all Americans’ personal financial lives. Regardless of recessions or times of economic stability, it’s important to keep in mind that bankruptcy is a very personal event.
While bankruptcy figures may increase and decrease with the general well-being of the economy, it’s still a personal issue that can’t be dictated by nationwide statistics. If you are struggling to pay your debts (whether they amount to a few thousand or hundreds of thousands of dollars), then you deserve the relief found in filing for bankruptcy.
The protection of bankruptcy exists for those who need it. And, no matter how much the national rate of filings per year drops, there will always be individuals and businesses that need the safe haven that bankruptcy provides.