For all New Yorkers thinking of filing for bankruptcy in 2011 (and those who aren’t as well), a recent post on CreditSlips.org (“Projected Filings for 2011“) makes fun of the impossibly specific projected number of filings for the year (1,457,787.3) and then goes on to explain the significance of the number: namely that it seems to indicate a 5% to 10%decrease in bankruptcy filings for 2011 compared to 2010.
What are the possible reasons for the decrease? And what does it mean for the U.S. as well as for average New Yorkers?
First, to put things in perspective, the number of filings is still extremely high, and still much higher than several years ago. So this is a relative decrease. Kind of like if Wilt Chamberlain only scored 90 points following his record-setting 100-point game in 1962.
With that out of the way, the suspected reasons for the projected decline in bankruptcy filings include:
- A likely reduction in unemployment, which usually corresponds directly to bankruptcy rates
- Less debt incurred over the last 3 years given the lack of consumer credit available, which may mean fewer debt problems
- Increased consumer credit availability, which means more people may have the means to stave off bankruptcy
It’s worth noting that less debt incurred and more increased consumer credit availability could, of course, mean that the next few years may see more bankruptcy filings as people incur more debt. Though this may be counteracted by better unemployment numbers as well.
What does it mean for you? It all depends on your situation, of course.
If you’re deep in debt and need a way out, then a bankruptcy filing would, of course, be an option you need to consider. And if you’re able to get your debts under control, then there’s, of course, no need to be another statistic in the world of bankruptcy filings.
The primary significance seems to be that hopefully the economy is starting to turn around and fewer people will be facing debt problems or need to go through the bankruptcy process. It’s been a difficult period, but perhaps this is an indication that there is light at the end of the tunnel.
In the meantime, if you do have questions about bankruptcy in New York, please feel free to contact experienced Business Bankruptcy Lawyer Bruce Weiner for a free initial consultation.
