The economic downturn of the past few years has left many people unable to pay their debts and keep up with expenses. This has resulted in people in Texas and across the nation filing for business and personal bankruptcy. Bankruptcy can help people get back on their feet by allowing for the discharge of most, if not all, their debts.
New statistics show a decline in the number of people petitioning for bankruptcy during the first half of 2012. According to one recent tracking report, business filings have fallen 22 percent in the first half of 2012, while individual consumer filings have dropped by 13 percent
The total number of new filings in the first half of the year was 632,130, which is a 14 percent decrease from the same period the year before. The total number of business bankruptcies was 30,946 and the total figure on consumer bankruptcy filings was 601,184. These numbers, provided by Epiq Systems Inc, are the lowest total number of bankruptcies since before the financial meltdown of 2008.
Interest rates have been at extremely low levels since the economic crisis struck. This has led some experts to speculate that the lower rates created the decline in filings. They say low interest rates may have allowed many people to get caught up on bills or successfully refinance their mortgages.
There are others, though, who suggest the drop in filings may be a reflection that economic conditions have driven some consumers so far down that they can't even afford to file for bankruptcy.
Despite the significant decrease in business and personal bankruptcy filings in Texas and everywhere else in the nation, there have been some large bankruptcies this year. Some of the most notable bankruptcies included Eastman Kodak Co., textbook publisher Houghton Mifflin Harcourt Publishers Inc. and also Hostess Brands Inc. These major bankruptcies are seen by some as suggesting the recession may not be over yet and that more business or personal bankruptcy filings are still to come.
For many people struggling with overwhelming financial problems, bankruptcy can often be the answer. To see if it's appropriate in any given situation, one would be wise to consult with an experienced attorney.