Personal Bankruptcies Down 50%

| Jul 27, 2017 | Bankruptcy Law |

Personal bankruptcy filings have dropped by 50-percent over the past six years. There are a number of reasons for this decline in bankruptcy filings. Unemployment is down which is typically a factor. In addition, according to ABC, (Margot Kim http://abc30.com/finance/medical-bankruptcies/2252646/ ), outstanding medical debt has dropped as a result of the Affordable Care Act. Pre existing coverage requirements and limits on caps are two of the provisions that have contributed. The article also mentions the  ‘Bankruptcy Abuse Prevention and Consumer Protection Act’ passed in 2005 as part of the explanation. However, I do not agree since the number of bankruptcies filed increased for a number of years after its passage and for the most part it has not prevented very many filings. Bankruptcy filings have historically been cyclical and with the next swing in the economy undoubtedly filings will rise again.