Georgia Ranks High for Bankruptcies Nationwide

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Bankruptcy Filings On Rise

According to the National Bankruptcy Research Center (NBKRC), consumer bankruptcy filings have increased 47.7% nationwide in April 2008 compared to statistics from April 2007. What's more, April 2008 filings totaled 92,291, which is a 7.1% increase of March 2008's 86,195 case filings.

ABI Executive Director Samuel J. Gerdano said attributes the nationwide increase to "the growing financial stress faced by American families, saddled with household debt and mortgage woes." He also said the ABI expects "consumer bankruptcies to top 1 million new cases this year."

Georgia continues to rank 2nd in state filing reports for consumer bankruptcies, just behind Tennessee. The state reported just fewer than 13,000 bankruptcy cases in the first quarter of 2008. This is not new for the state. Historically, Georgia rarely falls out of the top 5 states for filing bankruptcy, overall, and is ranked 8th in home foreclosure rates.

Financial experts site state laws allowing creditors to more easily collect on their debts as a major contributing factor to higher bankruptcy rates. These same laws allow for lenders to pursue housing foreclosure quickly, as well. This, along with a housing market recession, has sent individuals seeking alternatives through bankruptcy.

If you are one of the many Georgia consumers looking for financial relief, a qualified Georgia Bankruptcy Attorney at Berry & Associates can help evaluate your case today.