The Law Office of Bruce C. Bridgman Articles California a Top Bankruptcy State

California a Top Bankruptcy State

By Law Office of Bruce C. Bridgman  Jan. 30, 2013 10:39a

Personal bankruptcy filings fell in 2012. Despite this, California was one of the leading states in bankruptcy filings per capita. In 2012, close to 142,000 Californians filed for bankruptcy. Three quarters of these individuals filed for Chapter 7 bankruptcy, which is the most common form of filing. California ranked 9 out of all 50 states in the most bankruptcies with a decrease of -1.23 per capita from 2011. Bankruptcies peaked in the U.S. in 2005 before the new bankruptcy laws took effect as filers rushed to beat the deadline. The 2005 law, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 changed bankruptcy procedure with higher fees, an eligibility test, and mandatory financial counseling programs.

Tennessee was the top-ranked state for number of bankruptcies per capita in 2012. Its filing rate was 6.98 per capita. Nevada was the second ranked state with a filing rate of 6.84 per capita. California's per capita rate for 2012 was 5.12. Overall, bankruptcies across the nation fell by 14 percent in the first nine months of 2012 compared to the first nine months of 2011. Experts believe the fall is due to a slowly recovering economy and credit that is still tight to obtain from financial institutions.

Orange County Bankruptcy Lawyer

Deciding to file for bankruptcy is a difficult and often stressful task. Many people fear the consequences of a bankruptcy filing and consider it a personal failure. In many cases, however, bankruptcy can be the best solution to insolvency that causes undue stress and sleepless nights. Most people who file for bankruptcy do so due to events beyond their control, such as a job loss, wage or hour cutbacks, investment failure, costly illness, injury, or divorce, and similar events. A bankruptcy filing allows these individuals to eliminate unsecured debt and get a fresh start.

If you are in severe financial distress, don't wait or ignore the situation which can only get worse. Get the legal advice and guidance you need from an experienced and skilled attorney. Learn what your viable legal options may be which can bring you the debt relief you need. The Law Office of Bruce C. Bridgman, serving clients throughout Orange County, California is dedicated to helping you find the legal solutions that will work for you. Contact the firm to arrange for a legal consultation with one of the team's accomplished attorneys today.

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