Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What are North Carolina’s exemptions?”
Recently released bankruptcy statistics revealed that the number of personal bankruptcy filings in the U.S. fell 12 percent last year, dropping to 988,000. That number is way down from the 1.53 million that filed back in 2010, but still much higher than the 573,000 claims that were made back in 2006.
Experts say that the recent trend of falling bankruptcy rates is not likely to continue given the apparent improvements in the economy. Though it is somewhat counterintuitive, data shows that during good economic times the number of bankruptcy filings actually increase. The reason is because during good times when people are working they have more assets that are worth protecting.
For example, if a person is currently existing on nothing more than unemployment benefits or disability, there’s no reason to bother filing for bankruptcy. After all, that person would have few if any assets that could be seized by creditors and no income that could be garnished. However, when that person finally finds employment, then it is possible that creditors could try and garnish his or her wages, providing a reason to seek the protection of a bankruptcy court.
As a result, many bankruptcy experts believe 2014 will see a rise in the number of filings, likely for the first time since 2010. Beyond the wage garnishment reason for filing bankruptcy, experts say that the loosening of credit restrictions that has taken place since the beginning of the economic crash means that more and more people are getting loans and could thus run into trouble with the loans.
Immediately following the 2008 crash it was almost impossible for many people to get certain loans like mortgages. Now, restrictions have been eased and more average people are getting car loans and mortgage loans without the same strict approval process, something that opens up the possibility that some borrowers will end up over their heads.
Experts say that a variety of factors contribute to bankruptcy, including the loss of health insurance, health problems (even with insurance), divorce and the loss of a job. Given the upheaval in the economy, it’s likely that more people will face these prospects over the coming 12 months, perhaps pushing 2014 bankruptcy filing numbers back above the 1 million mark.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.