Bankruptcies increased in August 2022

On Behalf of | Oct 4, 2022 | Bankruptcy |

Individuals and businesses in Florida might find themselves struggling financially. Trends show that others across the United States are dealing with debt burdens, as evidenced by a growing number of bankruptcy filings.

Hard data about 2022 bankruptcy filings

Bankruptcy filings in August 2022 reflected an increase from August 2021. There were 35,355 bankruptcy filings, a number that includes all chapters. The figure consists of both individuals and businesses. August 2021 saw 32,276 bankruptcy filings, indicating a 10% increase for August 2022. Bankruptcy filings for small businesses increased significantly by 41%.

At the end of 2022, researchers may review the total number of bankruptcies filed. The final total will reveal how serious debtors are struggling in the current climate. Regardless of overall fiscal trends, individuals will make decisions based on their situation.

So, even when bankruptcy numbers are low relative to prior years, one person or company’s circumstances may be experiencing troubles. Bankruptcy could lead to an appropriate solution.

Different chapters of bankruptcy

Individuals often file for Chapter 7 or Chapter 13 bankruptcy. With Chapter 7, the debtor liquidates assets not exempt under state or federal statutes. The liquidation establishes funds to pay some debts, with remaining unsecured balances typically discharged. Chapter 13 involves developing and following through with a payment plan to cover renegotiated debts. Some debts face discharge in Chapter 13 as well.

Businesses could file for Chapter 7 or Chapter 11. Chapter 11 allows businesses to remain open and borrow money in some situations, among other potential benefits.