Bankruptcy Rate and Statistics 3rd Quarter in Massachusetts
There are a great number of positive economic factors and indicators that point to a steady recovery from the onset of the recession, especially the economy in Massachusetts. However, despite the slight climb towards improvements and pre-recession levels of unemployment and Bankruptcy filings, any Bankruptcy filing by a Massachusetts family or business is simply one too many. With expert and comprehensive legal guidance, advice, and representation, a family or business can navigate the Massachusetts Bankruptcy process and all its consequences and get the fresh financial start they need.
Massachusetts Bankruptcy Ranking
First and foremost, it is vital that Massachusetts residents realize there are improvements that point to recovery when it comes to Bankruptcy filings. Massachusetts currently ranks 39 out of 50 for Bankruptcy filings, which means Massachusetts is in a much better position than most other states. Nationally speaking, the last year has shown a positive upswing as the rate of filings has fallen 13% from June 2012 to June 2013. From June 2011 to June 2012, there were 1.3 million Bankruptcies. From June 2012 to June 2013, there have only been 1.1 million. This 12 month total for Massachusetts during this time period is the lowest total number of Bankruptcies in Massachusetts since December 2007 to December 2008. The first quarter of 2013 showed a 13% decrease in Bankruptcy filings compared to the first quarter of 2012. As the second and now third quarter wrap up, that trend continues. In fact, the numbers are already considerably down in Massachusetts and nationally for the entire year.
Types of Bankruptcy Chapter Filings
As Bankruptcies continue to decrease, the types of Bankruptcies in Massachusetts continue to follow a trend. Chapter 7, or otherwise known as personal Bankruptcy, makes the majority of filings. The latest quarter numbers put Chapter 7 Bankruptcies at 2,730 in Massachusetts. There were 695 chapter 13 filings, the second most popular type of Bankruptcy filed in Massachusetts. Both are down from the number filed in the third quarter of 2012.
While the decrease is great news for homeowners and business owners, there are still a number of common reasons that Bankruptcies still plague Massachusetts residents. The main reasons are still layoffs, unemployment, medical bills, and divorce. As the economy improves, these catalysts decrease and more people are able to weather the economic storm. However, if a Massachusetts homeowner or business owner does find Bankruptcy is their best option or they have questions about how Bankruptcy may help them get back on solid economic footing, they should always consult an experienced and trusted Massachusetts bankruptcy attorney. Shapiro law can help walk you through what to expect, what your best options may be, how long the process may take, and what the long term consequences to your credit may be. With expert and compassionate representation, the Shapiro Law Group, PC can help ensure your bankruptcy filing is a smooth process and that you get the most beneficial outcome you need, along with the fresh start you deserve.
By Anna Shapiro