People in Tennessee and throughout the United States are struggling to stay afloat, financially, at this time. Various issues, including inflation, loss of income and medical bills have caused many people to have trouble making ends meet. In fact, current data shows that there has been a noticeable increase in bankruptcy filings in U.S. courts across the country.
Comparative data between February and March 2022
In one month’s time, there has been more than 33% of an increase in petitions filed in U.S. bankruptcy courts. In the first quarter of 2022, there was an approximate 15% decline in personal bankruptcy filings. However, the latest month-to-month comparison shows that petitions are now on the rise.
Executive Director of American Bankruptcy Institute (ABI) weighs in on the topic
The ABI executive director recently spoke about issues that she believes have sparked an increase in bankruptcy petitions, particularly those filed under the Chapter 11 program. She stated that, in addition to inflation and rising interest rates, supply chain challenges and worker shortages have brought financial distress to businesses and to consumers, as well. Large commercial bankruptcies, which are often filed under Chapter 11, rose approximately 38% between February and March of this year.
Bankruptcy does not equate to financial failure
There may be some homeowners or business owners in Tennessee who are hesitant to file for bankruptcy because they worry that doing so means they have failed financially. On the contrary, bankruptcy is a financial tool that not only helps alleviate debt that has gotten out of control but also helps to lay the groundwork for a stronger financial future. Scheduling a consultation with an experienced bankruptcy law attorney is a logical first step to make when one is unsure whether bankruptcy is a viable option in a particular case.