The number of people filing for bankruptcy across Florida and the rest of the nation is on the rise, and there are a number of factors contributing to the uptick. Current bankruptcy filings for 2022 are still lower than last year’s numbers. However, there was a dramatic increase in the number of people filing between February and March of 2022.
According to Reuters, all types of bankruptcy filings, including consumer and business bankruptcies, increased by 33.5% between February and March of 2022. Consumer bankruptcies, specifically, rose 34% during this span.
Why more Americans are filing for bankruptcy
While medical debt is a primary reason many Americans wind up filing for bankruptcy, other factors are also contributing to the increase. In 2020, the government introduced numerous aid packages to help Americans who were struggling financially. Yet, by now, most of these aid packages are no longer available. Skyrocketing interest rates and growing concerns over inflation may also be contributing to the rising number of people filing for bankruptcy across Florida and the nation.
How Americans are filing for bankruptcy
When Americans file for consumer bankruptcies, they do so through either a Chapter 7 or a Chapter 13 filing. There are several important differences between the two types of personal bankruptcies, including who is eligible for them and how they wind up discharging debts.
Different types of consumer bankruptcies also take different amounts of time to complete. While it may take a matter of months to discharge debts through a Chapter 7 bankruptcy, it may take several years to do so through a Chapter 13 filing.