Bankruptcy in Utah raised 27% higher than last year already in the first 9 months of 2010. This is astonishing to many people considering the fact that the number of bankruptcy filings in Utah last year was an almost unprecedented high. Almost 14,000 people have filed for bankruptcy in Utah this year alone. The number is expected to top 18,000 by the end of the year. These numbers, reported recently by the Salt Lake Tribune, demonstrate that many families in Utah have been struggling financially and are looking for any means necessary to unload credit card debt, medical bills, and other types of dischargeable obligations. Additionally, a high number of Chapter 13s have been filed as means of saving family homes.
Nationally, Utah’s numbers a high. Bankruptcies throughout the country rose 11% from the previous year in the first 3 quarters of 2010. This means that Utah more than doubled the national average in percentage of increased bankruptcy filings from last year. It is not secret that Utah has a high bankruptcy percentage per capita but looking at the nation as a whole, Utah represents only a small portion of the actual bankruptcies filed. Nationally there were well over 1 million bankruptcies filed from January 1 of this year through the first of October.
Chapter 7 Bankruptcy Filings
Chapter 7 bankruptcy filings made up the vast majority of all bankruptcies filed in Utah this year. Chapter 7 filings totaled about 66% of all bankruptcies in Utah so far. Many of those individuals choosing to file for the Chapter 7 option did so to receive a partial or total discharge of their debt. Chapter 7 is often the preferred chapter to file under because it allows for the most debt to be discharged and a fresh start. Many other people in Utah chose to file Chapter 13 bankruptcy as a means of saving a family home or other assets.
Why are Utah Bankruptcies Soaring?
Bankruptcy is considered a latent indicator of economic woes. This means that a rise in bankruptcy numbers is often reflective of a recession several months or even years following the onset of the recession. Utah traditionally falls behind current economic trends. Utah has been no different in this recession in the sense that Utah is just now starting to see the effects of the tumbling economy. As such, while some states may be seeing a tapering off in economic trouble including bankruptcy filings, Utah is still likely in the thick of it and will continue to see more bankruptcy filings in the months to come.
As bankruptcies continue to rise in Utah, our law firm and many other lawyers will continue to offer bankruptcy legal services to try and mitigate the loses the people of Utah are sustaining.
If you or someone you know is considering bankruptcy, you are not alone. As bankruptcies in Utah continue to rise, law firms such as Salcido Law Firm and Utah Debtor Protection will continue to provide the best possible legal representation to those in need. For more information on filing for bankruptcy in Utah, speak to a Utah Bankruptcy Attorney for free at 801.810.8825.