Decrease in bankruptcies filed in Phoenix continues

Decrease in bankruptcies filed in Phoenix continues

Dealing with financial challenges is anything but easy. Even when there are some options in dealing with these problems, not all routes offer the best solution for the individual, couple or family. When debt relief is needed, some seek to understand the process of bankruptcy and whether they are able to take this major step.

Deciding to take the plunge and file for bankruptcy is not a new thing for many Arizona residents, but a recent report indicated that the rates for filing has dropped in some areas of the state. According to the survey done in Phoenix last month, 1,439 consumers and businesses filed for bankruptcy, which is a 12 percent drop from May 2013 when 1,630 filed for bankruptcy with the U.S. Bankruptcy Court.

Although the rates in April were lower than those in May, these rates are still a decline from last year's numbers. Various factors could be cited for the fall in rates. The city of Phoenix was listed as one of the best cities for younger workers to begin their career. The city has an availability of entry-level jobs with median salaries for college graduates. Furthermore, the cost of living and the social scene is relatively affordable. This helps keep costs down and lowers the amount charged on credit cards.

Although some residents in Arizona might face less troublesome financial times, other residents still struggle with their debts. This often amounts to credit card debt, and the report indicated that many consumers pursue bankruptcy in order to alleviate this kind of debt. Furthermore, they expect the rate for this type of debt relief to increase.

No matter the type of financial troubles an individual or family is enduring, it is important that they understand their options. Filing for bankruptcy is not an easy decision to make and should not be made without guidance or knowledge of the process. This will usually ensure all steps are done properly and the best interest of the individual is protected.

Source: AZ Central, "Arizona bankruptcies improve again, but trend uncertain," Russ Wiles, June 10, 2014

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