Across the United States, varying factors result in statewide and regional differences in the number of bankruptcies filed. A recently discussed statistical analysis of per capita personal bankruptcy filings has revealed that most of the states with the highest rates of personal filings are located in the South, the Midwest, and the Great Lakes regions. Although many factors contribute to each state’s per capita rate of personal bankruptcy filings, the existence of beneficial state debt protection laws appears from the data to correlate negatively with the per capita filing rate.
A recent report on the per capita filing rate for personal bankruptcies between April 2015 and March 2016 demonstrates that the states with the very highest personal bankruptcy rates are clustered in the South, with key Great Lakes states close behind. According to the report, Tennessee is the state with the highest rate of personal bankruptcies, with 553 filings for every 100,000 residents. Indiana and Kentucky are both in the top 10, with 387 and 345 filings for every 100,000 residents, respectively. The national median over that time period was 224 filings per 100,000 people.
The Reasons for the High Rates of Personal Bankruptcy Filings
According to the report, the high rates of personal bankruptcies in these states are not the result of weak economies or residents who don’t care to pay their debts. Instead, the article notes that these high bankruptcy rates tend to occur in the states that have weak debtor protection laws that allow creditors to easily seize a debtor’s property in the event of a delinquency or default. Since federal bankruptcy laws protect debtors from becoming destitute and unable to support themselves as a result of debt problems, the states with the worst state laws see the most residents seeking federal bankruptcy protection. Debtors in states like Kentucky and Indiana may benefit the most from federal bankruptcy protection because their state laws offer little protection from harassment and property seizure by creditors.
Should You Consider Bankruptcy Protection?
If you or a family member has been experiencing debt problems or is receiving harassing phone calls and collection letters from creditors, federal bankruptcy laws may offer the protection you need to get your life back on track. The advice of an experienced bankruptcy attorney may enable you to select a course of action to address your debt problems. The Louisville and Southern Indiana bankruptcy attorneys at the Schwartz Bankruptcy Law Center understand the problems that residents living in our regions face with debt collection, and we pride ourselves on helping our clients take control of their finances again. Our bankruptcy lawyers represent clients nationwide in various bankruptcy proceedings related to Chapter 7 or Chapter 13. Call 866-366-3328 today or contact us through our website to schedule an initial risk-free consultation.
More Blog Posts:
Employment Discrimination Lawsuit is Dismissed After Plaintiff Fails to Disclose it in a Bankruptcy Proceeding, Kentucky Bankruptcy Lawyers Blog, published July 28, 2016.
Bankruptcy Debtor Fails to Justify Transfer of Farm to Her Father Before Bankruptcy, Kentucky Bankruptcy Lawyers Blog, published August 14, 2016.