Learning About Recent Consumer Bankruptcy Trends

What have general consumer bankruptcy trends looked like over the past decade and a half since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005? How have bankruptcy filings remained stagnant or shifted over time? The United States Courts recently published an analysis of consumer bankruptcy trends from 2005-2021, which highlights key information about how the bankruptcy process has unfolded for many Americans and how trends have changed over time or sometimes remained the same. Consumer bankruptcy refers to any non-business bankruptcy cases filed — typically under Chapter 7 or Chapter 13, but sometimes under Chapter 11, depending upon the debtor’s circumstances.

The analysis emphasizes that consumer bankruptcy filings actually account for about 97% of all bankruptcy filings in the U.S., so it is especially important to gain a clearer understanding of these trends. Our Oak Park bankruptcy lawyers want to discuss the analysis with you in order to provide you with more information about consumer bankruptcy.

Getting the Facts About Consumer Bankruptcy Trends

What are some of the key points from the United States Courts analysis and news release? Here are some of the key takeaways about consumer bankruptcy filings between 2005 and 2021:
  • More than 15 million consumers filed for bankruptcy between 2005 and 2021, and of those filers, more than 10 million consumers filed for Chapter 7 bankruptcy (representing about 67% of all consumer filings), while about 5 million consumers filed for Chapter 13 bankruptcy (about 32% of all consumer filings);
  • Bankruptcy filings tend to increase during “recessionary periods,” with a marked increase in consumer bankruptcy filings between December 2007 and June 2009 and a “steady decline” in the years that followed until 2019;
  • Pandemic-related economic stress is difficult to measure in the recently analyzed trends given that only two of those years are part of the data, and we may have yet to see the ramifications of unemployment and increased health needs during that time;
  • Chapter 7 bankruptcy filings declined steadily from 2010 until 2019, while Chapter 13 filings increased during this time;
  • As the pandemic started in 2020, Chapter 13 filings declined, and Chapter 7 filings increased from previous levels (although we have not yet seen a spike in consumer filings that some commentators predicted); and
  • Regional distinctions exist in bankruptcy filings, with the highest rate of Chapter 7 filings in Midwestern and Western states (Illinois, Ohio, and Nevada), and the highest rate of Chapter 13 filings in Southern states (Alabama, Tennessee, and Georgia).
Contact a Consumer Bankruptcy Lawyer in Oak Park

Whether you have questions about the consumer bankruptcy process or you know that you are ready to file for bankruptcy and need help with your case, our firm is here to assist you. One of the dedicated and experienced Oak Park bankruptcy attorneys at our firm can speak with you today about your case and can help you to determine your eligibility for a consumer bankruptcy filing. Once you are ready to file, we can assist you from start to finish. Contact the Emerson Law Firm for more information about how we can help.



See Related Blog Posts:

How to Keep Your Property in a Consumer Bankruptcy Case

CFPB Addresses Debt Collection Mill Lawsuit

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