Higher Rates of Personal Bankruptcy in Illinois

During the recession, consumer bankruptcy rates rose dramatically across the United States. As a recent article from Crain’s Chicago Business makes clear, there were 822,590 bankruptcies nationwide in 2007, and that number grew to more than one million each year. To put that increase another way, the rate of personal bankruptcy in the country increased by more than 20% during the peak of the recession. But have all states in the U.S. recovered, returning to the pre-recession rates of bankruptcy? As the article clarifies, while the national number of bankruptcies has dropped once again to levels that are even lower than those reported in 2007, Illinois continues to have higher rates of consumer bankruptcy than many other states.
What do the higher rates of personal bankruptcy in Illinois tell us? If you live in the Chicago area and have questions about filing for consumer bankruptcy, you should always discuss your case with an experienced bankruptcy attorney.
Illinois Among States with Highest Consumer Bankruptcy Filings
As the Crain’s Chicago Business article clarifies, bankruptcies on the whole are dropping. The bankruptcy rate in 2015 showed fewer than 820,000 filings across the country, which was lower than the rates recorded prior to the recession. However, Illinois does not appear to be recovering in the same way as many other states. Based on data compiled by NerdWallet, five of the counties in Illinois were listed among the top counties in the nation for highest bankruptcy rates. The following are some important statistics from the NerdWallet report:
  • In a list of the “top 100 counties” for consumer bankruptcy filings in the country, five of those counties were in Illinois.
  • The five Illinois counties with the highest rates of bankruptcy were Cook County (16th highest in the nation), Winnebago County (60th highest), St. Clair County (63rd highest), Will County (74th highest), and Macon County (80th highest).
  • In Cook County, the bankruptcy filing rate for the 2015-2016 period average 638.35 for every 100,000 people.
  • For every 100,000 people, the state of Illinois has approximately 432 bankruptcy filings, which makes it the state with the fourth-highest rate of consumer bankruptcy filings in the country.
  • The only states with higher bankruptcy filings than Illinois were Tennessee (553 filings for every 100,000), Alabama (529 filings for every 100,000), and Georgia (483 filings for every 100,000).
Given that the rates of bankruptcy filing in Illinois are much higher than the national average, which states are on the other end of the spectrum? The article in Crain’s Chicago Business depicts the stark disparity between bankruptcy filings in Illinois and states listed among the lowest bankruptcy filing rates. For instance, Alaska had the fewest bankruptcy filings between 2015-2016, with only 53 filings per every 100,000. North Dakota also had a strikingly low rate (78 filings per every 100,000), as did Vermont (97 filings per every 100,000).
Contact an Experienced Oak Park Bankruptcy Lawyer
While the rates of consumer bankruptcy in Illinois may seem startling, a recent article in BHPH Report underscores that consumer bankruptcy filings in the United States rose slightly in most places by the end of August. We will need to wait and see how personal bankruptcy rates shift in the coming months to have a better sense of the statistics concerning Illinois residents.
In the meantime, if you have questions or concerns about filing for Chapter 7 bankruptcy, an experienced Oak Park bankruptcy attorney can assist you. Contact the Emerson Law Firm today.
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