As the rate of personal bankruptcy dropped nationwide over 10 years after the Great Recession, analysts were troubled to see the trend change in 2019. Economists have noted that more people are getting into debt again at levels they cannot afford to pay back. It’s still unclear why this is occurring. If you are considering filing bankruptcy in Las Vegas, NV, you may contact an attorney for a free consultation.
High Personal Bankruptcy Rates
Southeastern states tend to have the highest bankruptcy rates per capita, and that held true in 2019 as well, with the top four located there. However, Nevada was in fifth place for the most personal bankruptcies.
The state ranked first for Chapter 7 bankruptcies per capita in 2009 and 2010 and fourth for Chapter 13. Chapter 13 creates a repayment arrangement with creditors after filing bankruptcy in Las Vegas, NV, whereas Chapter 7 erases most debt after the consumer pays as much as is feasible.
Consumers may be able to file for Chapter 13 if their home is in foreclosure or they know it will be soon. Approval of the repayment program essentially requires lenders to work with mortgage holders as long as the payments fit into the budget. This can be a tough road for consumers, though. They must continue to make current payments on time while also making up back payments on the repayment arrangement. Unfortunately, a high percentage of these men and women default.
Schedule a free consultation with Newark & Newark. They are committed to helping clients resolve their debt concerns safely and legally through the vehicle of bankruptcy.