• 25
  • May
    2011

During times of great financial struggle sparked by sudden unemployment, unmanageable medical bills, or a rock-bottom home value, many people understandably feel like they have very few options. Personal bankruptcy, which had previously been completely out of the question, may be very seriously considered. And, for many debtors and homeowners, deciding to file for Chapter 7 or Chapter 13 bankruptcy can be a very smart move. A bankruptcy can wipe out debt, protect a home or car, and give debtors a completely fresh start.

In a recently released survey from legal information website FindLaw.com, it was learned that a larger-than-expected number of Americans have contemplated filing for personal bankruptcy at some point in their lives. Of the 1,000 respondents who answered the telephone survey, 13 percent reported that they had considered filing for bankruptcy protection at least once. This means that approximately one in every eight Americans have seriously thought about bankruptcy as a way to resolve their financial problems.

The survey did not report just how seriously respondents had considered filing for bankruptcy, so it is difficult to tell just how bad things are for respondents in Tennessee and throughout the country. However, last year, 1.5 million individuals filed for personal bankruptcy in the U.S., which is a five-year high. This definitely indicates that economic recovery has not yet reached the front door of many Americans.

There were more men than women in the approximately 130 survey respondents who indicated that they had considered bankruptcy, and people between the ages of 35 and 54 were the most likely to have contemplated a filing.

Source: Main Street, "13% of Americans Have Considered Bankruptcy," Matt Brownell, 19 May 2011