Determining whether bankruptcy is the right decision for you depends on a number of factors. Over the past few years, there has been an increase in pro se bankruptcy filings. In fact, western states have the highest percentage of people filing for chapter 7 or 13 bankruptcy without the assistance of an attorney. Most consumers file for bankruptcy hoping that it will afford them a fresh start, but federal reforms to bankruptcy laws in 2005 have made consumer bankruptcy cases more complex. It is important to understand common mistakes that can be made along the way for individuals who have considered filing for bankruptcy without an attorney.
According to recent reports, the average amount of student loan debt for a 2015 college graduate is $35,000. Not only has that number steadily increased in recent years, a greater percentage of students are taking out student loans to help finance their college education. Given the staggering amounts of student debt and the weak job prospects for graduates coming out of college, it comes as no surprise that we are seeing the highest rate of defaults since 1995. As a result, those borrowers may be facing a crippling amount of student debt and even considering filing bankruptcy.
California has consistently been at the top of the list for states with the highest number of bankruptcies in the country. It was number one in 2011 reporting over 240,000 bankruptcies, according to Debt.org. For the millions of Individuals who face financial problems, there may be an opportunity to avoid bankruptcy.
Filing for bankruptcy is never something that a business wants to have to consider, but it can be a way for a company to reorganize and find a financial solution to work its way out of debt. The Department of Justice has researched trends in Chapter 11 bankruptcy filing and have seen numbers of filed cases exceed 3,000 over the past few years. However, this is a significant drop compared to the two decades previous.