Clark & Washington

Chapter 7 and Chapter 13 Bankruptcy Projections for 2019

From 2006 through 2017, Georgia saw some of the highest rates of non-business Chapter 7 and Chapter 13 bankruptcy filings in the nation. During this period, there were 104,160 total bankruptcy filings: 81,285 Chapter 13 bankruptcy filings and 22,875 Chapter 7 bankruptcy filings. Georgia has remained one of the top states for bankruptcy in the country, even as individual filings have gone into decline. But will bankruptcy remain strong in Georgia moving into 2019?

Why Bankruptcy in Georgia Remains a Popular Option

Why is bankruptcy so common in Georgia? It’s because of the lack of better alternatives. Bankruptcy is the best option for many households in debt. Multiple counties in Georgia continue to top the charts every year in national bankruptcy statistics. Georgia residents don’t have a lot of options when it comes to resolving their debts.

If a Georgia resident wants to resolve a debt without potentially losing their home in a foreclosure, a Chapter 13 or Chapter 7 bankruptcy is often the only choice. While there are technically other options—such as debt consolidation—these other options require that creditors approve them first. Bankruptcy is the only solution that a Georgia resident can take without creditor approval.

Moreover, Georgia tends to attract businesses—especially Atlanta. While some of these businesses become extremely successful, many of them end up in debt. This debt can ultimately lead to the business owner declaring bankruptcy. Consequently, while bankruptcy filings have been going down in Georgia, Georgia still remains among the highest bankruptcy rates in the nation.

Bankruptcy Projections for Georgia in 2019

In the past few years, bankruptcy filings have been down. But that isn’t a situation that’s likely to continue. 2019 is likely to be a year of recession. Consequently, it’s likely that bankruptcy rates are going to rise across the nation—and, historically, they will rise higher in Georgia than elsewhere.

This isn’t altogether a bad thing. For many, bankruptcy is an extraordinarily useful tool that allows them to start from a clean slate. For Georgia business owners, a bankruptcy can be the first step towards starting a new business. For the average Georgia resident, a bankruptcy offers the ability to get out of debt while still retaining a home and a car.

If you’re considering bankruptcy, it’s time to talk to your bankruptcy attorneys in Atlanta GA. Clark and Washington can help. Call Clark & Washington at 770-285-1971 today to schedule a no-obligation, no cost consultation. You can take control of your financial situation today.

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