If you are thinking about filing for bankruptcy, it is important to know that you are not alone. Across the country, many people file for bankruptcy each year and you should review statistics on these filings in order to understand the prevalence of these claims.
From Chapter 7 to Chapter 13, people file for bankruptcy for a host of reasons. Whether you lost your job and have fallen behind on bills or you are struggling with the aftermath of an unexpected medical crisis, bankruptcy could help you find financial freedom and erase debt that makes daily life challenging.
Looking at the prevalence of bankruptcy
According to the United States Courts, more than 544,000 people filed for bankruptcy over the course of 2020. It is important to note that bankruptcy filings decreased during 2020 because a lot of courts did not remain open to the public throughout the year. During 2019, more than 774,000 people filed for bankruptcy.
Other statistics on bankruptcy
In 2020, more than 522,000 non-business bankruptcy filings took place, while 21,655 bankruptcies involved businesses. More people filed for Chapter 7 bankruptcy than any other type of bankruptcy (378,953), followed by Chapter 13 bankruptcy (156,377). Chapter 11 bankruptcies increased in 2020 (8,333) when compared to 2019 (7,020).
When it comes to bankruptcy, every case is unique. Bankruptcy could offer a number of benefits, allowing you to keep your home and finally finding relief from debt that has haunted you for years. Make sure you understand all of your options and take a methodical approach to your case before filing a petition.