• Bankruptcy Filings Down in 2012; Chicago Bankruptcy Attorney Hopes it is Sign of Improving Economy

    Personal bankruptcy filings in 2012 have decreased from 2011, according to statistics from the United States courts. The number of personal bankruptcies in the one year period, ending on September 30, dropped significantly. The number of Chapter 7 bankruptcy filings dropped from 1,036,950 in 2011 to 874,337 in 2012-a 16 percent decrease. Chapter 13 bankruptcies dropped from 417,530 to 375,521, down 10 percent.

    Chapter 7 bankruptcies still account for approximately 67 percent of all bankruptcies. The states with the highest number of filings per capita are Nevada, Tennessee and Georgia. The lowest are Alaska, District of Columbia and North Dakota.

    Consumer default rates have also continued to decline over the same time-down 1.5 percent from a year ago.

    These are signs of a recovering economy, and hopefully the trends will continue into 2013. Despite these improving numbers, many Americans are still struggling with debt, and bankruptcy could be a viable option. Please contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy lawyer .

  • Healthcare Costs, Medical Debt and Bankruptcy

    With the recent federal healthcare mandate, many people think that medical bankruptcy will become a thing of the past. Hopefully this will be true in the future, but that provides little comfort to individuals and families already buried with medical-related debt.

    In 2007, more than 90 percent of people who filed for bankruptcy because of medical costs owed more than $5,000 to healthcare creditors. The other medical bankruptcies were due to loss of income as a result of an injury or a health condition.

    Insurance companies typically cover anywhere from 60 to 80 percent of major medical costs. For someone who is diagnosed with cancer or another serious illness, this may not be enough to prevent a medical bankruptcy.

    A survey from 2007 reported that approximately 70 percent of US citizens either have difficulty paying for medical treatment or have medical debt. In 2009, 50 million Americans still had no health insurance. Another study found that 63 percent of Americans carrying medical debt avoided future medical treatment.

    If you are carrying medical debt and struggling to pay bills, you may want to contact a bankruptcy attorney to evaluate your options.

    Benjamin Brand Services- Chicago bankruptcy attorneys .