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How Many People Filed Bankruptcy in 2009? | Southern Illinois Bankruptcy Lawyer

Many people thought bankruptcy filings hit a high between 2003 and 2005, when the federal bankruptcy laws were amended. People rushed to file bankruptcy in fear that it would be too hard to file after the amendments were enacted. Since then, we’ve learned that this fear was unfounded.

The economic downturn hit hard in 2009. Housing prices were dropped and unemployment rates increase. The number of bankruptcy filings has also increased. In 2008, bankruptcy filings went up by one third from 2007. In 2009, bankruptcy filings continued to rise 32% to an estimated 1.4 million filings throughout the country. This is the highest we’ve seen since the 2005 bankruptcy amendments took effect.

The increase has been felt by all layers of society, cutting across every demographic group. It doesn’t matter who you are, hard times can hit us all.

Last year, over 70% of the bankruptcy filings were Chapter 7 while Chapter 13 filings accounted for almost 30% of all filings. Statistically, some of the biggest reasons for filing bankruptcy were job loss and overwhelming medical expenses. Since the credit crunch has made it harder to turn to credit cards in times of emergency, catastrophic events like a job loss or pressing medical emergency has left many more families in trouble. Just one emergency room visit can change everything.

There may, however, be another reason that 2009 bankruptcy filings have risen to new highs. With famous people who’ve filed bankruptcy suddenly speaking out and well-known companies reorganizing in the public eye, there is no longer such a negative stigma attached to bankruptcy. Many Americans now think, “How can it be shameful if so many successful people and companies are filing?”

And, they are right. Finally, the stupid belief that only dead beats or irresponsible people file for bankruptcy is long gone. Perhaps the tough economic times have allowed all of us to see that bankruptcy is actually a responsible move and smart decision. After all, it allows you and your family to wipe the slate clean and move on to a better life.

Wondering if Missouri or Illinois bankruptcy is the right move for you and your family? You can learn more about your debt, your options for handling it, and how to find the best St. Louis bankruptcy attorney by requesting my free Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

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