The good news for readers in New Jersey is that the number of bankruptcies in our state and across the nation has dropped for the past two consecutive years. In fact, a recent report indicates that the national level of personal bankruptcy filings fell by 14 percent last year. However, not all in our state have been able to avoid making the decision to seek the protections offered by bankruptcy.
The bad news for our readers in New Jersey is that one official believes that the drop in filings of personal bankruptcy is not due to a betterment of the economy. In fact, the same official asserts that, with unemployment continuing at a high rate, the number of filings will likely increase in the future. In addition, he notes, wages for many people have remained stagnant during the recent recession.
As many people in our state know well, the unemployment rate is an indication of how many people are out of work across the nation. When a person finds that they have lost their job or suffered another financial stress, they may be unable to repay the debts that they owe. When that happens, personal bankruptcy is an important protection to consider.
Filing for a personal bankruptcy may not always be an easy decision. However, in some cases the protections offered can assist a person in their efforts to achieve a fresh financial start. Through strategies such as debt reorganization or discharge in bankruptcy, a person can be free of overwhelming debt and lay the ground work for a return to financial security.
Source: citizensvoice.com, “Bankruptcy filings drop in 2012,” James Haggerty, Jan. 14, 2013