The Administrative Office of United States Courts reports that bankruptcy filings fell significantly in the past fiscal year that ended on June 30, 2015. The Administrative Office reported that there were 879,736 bankruptcy filings nationally during that time period— 854,690 personal filings and 25,046 business-related. This is a decrease from 2014. In fact, the number of filings decreased from the just over a million filings from the year before, bringing the total number of filings down 12%.
The number of bankruptcy filings reported for the past year is actually the lowest it has been in seven years, according to the Administrative Office of U.S. Courts. In the past four years alone, bankruptcy filings have fallen about 42 percent nationally, with bankruptcy filings by businesses falling by more than half. This is an encouraging piece of news for consumers and businesses, as it appears that the improving economy is having a positive effect.
Closer to home, in the Northern District of Alabama there has also been a decrease in filings from the previous year, though not as dramatic as the national decrease. In 2014 there were 13,751 total filings in the district, and in the year ending June 30, 2015 there were 12,842 filings. That is a decrease of 6.6%. The Northern District of Alabama includes Birmingham, Huntsville, Anniston and Tuscaloosa.
Even though the improving economy seems to be resulting in a decrease in bankruptcy filings, a large number of people are still struggling daily to pay their debts or are dealing with pending foreclosures, garnishments, or repossessions and would benefit from filing bankruptcy. Bankruptcy is a way to protect yourself from creditors and gain a fresh start. If you are interested in a free consultation with an experienced bankruptcy attorney to discuss whether filing bankruptcy is right for you, please contact one of our offices.