• 01
  • September
    2010

Despite having a lower bankruptcy rate than the previous year, Tennessee still remains near the top when it comes to listing states with the highest bankruptcy filing rates. Last year, Tennessee residents ranked number two, trailing only the state of Nevada for the highest rate of filings across the country.

Recently released statistics show that bankruptcy filings across the country have risen as much as 13 percent this year and don't show many signs of slowing down. In fact, the month of July alone say a 9 percent increase in filings over the same time a year ago.

When one looks a the total number of filings, it may provide an even better sense of just how many people are choosing bankruptcy. From July 2008 until the end of June in 2009, 1.25 million people filed bankruptcy cases. In the twelve months following, 1.5 million made bankruptcy filings.

In Tennessee in particular, bankruptcy filings rose last month, but are still down about 6.6 percent over this time last year. While the state's declining bankruptcy rate sounds like good news, it should be noted that 2009 had an exceptionally high number of filings and it is not outside the realm of possibility that filings could pick up again and catch last year's totals.

While all of this news may seem dire, there are few positive things to take from this. Bankruptcy is a last resort for many people, but it may also represent their first step toward getting back on their feet. Once people get through the bankruptcy process, they should be in a better position to make sound financial choices and be more productive without having to deal with crippling debt.

In addition, the fact that bankruptcy has become necessary for so many people is helping remove the stigma and embarrassment that once followed a bankruptcy filing. More people are coming to realize that financial difficulties don't just happen to those that are careless with money. Bankruptcy has come to be recognized as an option for people of all walks of life who may have been affected by the economic downturn.

In our next post, we will look a little more closely at some of the reasons behind these climbing bankruptcy filings, including issues surrounding unemployment and medical debts.

Related Resources:

Bankruptcy filings rebound (The Tennessean)