Phoenix Area Bankruptcy Filings Decline Slightly in September, Still Much Higher Than 2009
The Arizona economy continues to struggle mightily, and one of the most direct ways to measure the suffering of Arizona residents who make futile attempts to pay their monthly obligations is by looking at the number of bankruptcy filings that are being recorded. In another case of 'positive' bad news, the number of bankruptcy filings in Phoenix dropped slightly in September as compared to August of this year. However, when compared to the number of bankruptcy filings recorded in September of 2009, last month showed that individual financial struggles remain a serious problem with residents of Maricopa County.
The United States Bankruptcy Court recorded 2,819 filings in September, which represents a slight decrease from the 2,865 bankruptcy filings recorded in August. However, the number of September filings last month also represents a 14 percent increase from the number of filings recorded in September of 2009 at the same courthouse. This is a staggering increase and a clear indication that while some experts are saying that the worst of the Great Recession is behind us, people are continuing to suffer amid the real estate market meltdown in Arizona and a sagging employment rate.
In addition to the raw number of filings, the court separates the types of bankruptcy filings that were initiated. About 80 percent of the bankruptcy filings in September were under Chapter 7 of the Bankruptcy Code. Chapter 7 bankruptcies involve the liquidation of assets in order to at least partially satisfy creditors. Most of the remaining bankruptcy filings were done so under Chapter 13 of the Bankruptcy Code, and these cases could generally be classified as consumer reorganization filings.
Arizona Bankruptcy Lawyers
While this news is most certainly not positive, it should tell anyone who is struggling that he or she is far from alone in the Phoenix area. Those who find themselves in this position need to take steps to regain control of their financial lives for many reasons, not the least of which is to recapture a basic peace of mind that adds to the overall quality of life.
If you are struggling to meet your obligations and you're not sure how to get out from under a growing mountain of bills and stress, contact the Arizona bankruptcy lawyers atMontano Arentz & Associates, PLLC today to schedule a free initial consultation.