Financial Woes Causing Bankruptcy Filings to Rise Warns T.L. Brown Law Firm

SAN DIEGO, March 3, 2023 /PRNewswire/ -- Bankruptcy filings have seen an alarming increase of 18% from February 2022 compared to February 2023, according to Epiq Bankruptcy. This trend is projected to continue in upcoming months.

The bulk of these filings are Chapter 7 bankruptcy petitions, which comprise the majority of personal bankruptcy cases. These Chapter 7 cases allow debtors to discharge most commercial debts in a process that takes roughly 3 months.  With the exception of certain debts (i.e., student loans), most debts can be discharged in a Chapter 7 bankruptcy filing.

Tristan Brown, a bankruptcy attorney at T.L. Brown Law Firm, explains, "Americans are desperate. We've seen a dramatic increase in Chapter 7 and Chapter 13 filings since the beginning of the year. We anticipate bankruptcy filings to continue to increase for months to come."

The rise in bankruptcy cases has been attributed to a variety of factors, ranging from the COVID-19 pandemic to a general lack of financial literacy when it comes to managing debt.

"Our phone is constantly ringing with calls from desperate Americans that relied on credit cards and loans during the pandemic," claims Attorney Brown. "When businesses shut down in 2020, many had to borrow in order to survive. Three years later, people are still drowning in pandemic debt and the rising living costs only make it more difficult to get out the hole."

No matter the cause of this increase in bankruptcy filings, it is important to ensure that individuals understand their debt relief options and have access to quality legal services. 

"Given the demand, there will be a lot of unqualified individuals and companies offering debt relief services," warns Attorney Brown. "If you're considering bankruptcy, do some research to ensure you're speaking to an experienced bankruptcy attorney. The scammers are hungry.  Be careful."

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SOURCE T.L. Brown Law Firm