The bankruptcy filing rate is at its lowest point in seven years for most everywhere in the country, except for the Land of Lincoln and a few other states.
November 2014 filings were down 16 percent, when compared to November 2013. Much of the decrease was due to a much lower commercial bankruptcy filing volume. These new filings were down 27 percent. One observer pointed to a combination of high filing costs, low consumer spending and low interest rates as being primarily responsible for the decline.
As per iStockAnalyst, an Oregon based online subsidiary of Wall Street Tools, LLC, Fitch Ratings recently reported that consumer bankruptcy is expected to continue to decline throughout the remainder of 2014. Fitch Ratings, a global rating agency, attributes the decline to lower unemployment rates coupled with a recovering economy. Personal bankruptcy rates are expected to decline by eight to 10 percent, marking the fourth consecutive year of lower instances of personal bankruptcy protection petitions.
Some good news came for San Bernardino, California residents in mid-April when the city announced that it “will resume paying into the state pension fund on July 1,” according to Reuters News. Yet with this announcement came the information that the city will, at the same time, “continue to renege on other debts including payments to bondholders.” The city was the first in a debt-stricken state to halt all contributions to the city’s pension fund—the nation’s largest.
The main reasons why people seek bankruptcy are either from medical bills, divorce or unemployment. Obama has set up a plan to try and eliminate expensive medical bills for those without insurance. Divorce will continue to fluctuate with no discernible end. The last cause of bankruptcy, unemployment, is much easier to evaluate.
In Illinois, the owner of six coal fired electric generating plants, including Fisk and Crawford stations in Chicago, is very close to filing for bankruptcy. The chairman and chief executive officer at Edison International, the holding company for Edison Mission Energy whose subsidiary is Midwest Generation, Ted Craver said EME is not expecting to repay $500 million debt that is due in June 2013.
The road to bankruptcy can be lined with persistent creditors, harassing phone calls, and enough daily annoyance to make a person crazy. Credit card debt is one of the main reasons cited for bankruptcy for Americans, and many in debt negotiate with debt settlement programs.
Reuters reports that U.S. businesses and consumers might end the year with the lowest number of bankruptcies since before the 2008 financial crisis. According to data released on July 5, the amount of businesses and consumers filing for bakruptcy fell 14 percent in the first half of 2012.
The number of Illinois bankruptcies has been consistently increasing for the last several years. According to the American Bankruptcy Institute (ABI), in 2007 there were just over 41,000 bankruptcies in Illinois, and by 2010 there were over 82,000 Illinois bankruptcy filings.