Evaluating recent reports on increases to bankruptcy filings | Reed Law Firm, P.A.

Evaluating recent reports on increases to bankruptcy filings

On Behalf of | Mar 3, 2023 | Bankruptcy |

Financial challenges can arise under a multitude of scenarios, and sometimes it might not be easy to keep debt at bay. Issues with debt can gradually build with time or seem to appear overnight, and the fallout thereof may have a lingering impact on your life and leave you with questions about your options for relief.

While facing dire financial straits can be a stressful and daunting experience, it might be comforting to know that you are not alone in this regard. Recent financial challenges have left many individuals in South Carolina facing dire financial woes, and such hardships may be a contributing factor to the rise in bankruptcy filings.

Increases to bankruptcy filings

Data from recent reports indicates that, over the past year, bankruptcy filings increased by nearly 20% across the board. This includes both business and personal filings, and there are various types of financial challenges that likely contributed to this rise, such as:

  • Mounting economic pressure: High levels of inflation have led to mounting economic pressure that caused the price of everyday necessities to soar. Many families have likely felt the sting of such hardships.
  • Rising debt levels: As the price of necessities increases, most people may find it more and more difficult to provide for their needs or build up savings, and this may even make it difficult to keep up with monetary obligations:
  • Limited financial aid: Options for affordable financing may also be somewhat limited, and with high interest rates on many credit offers, this may hardly seem a viable path to resolving debt concerns.

Understanding that you are not alone may help you better prepare to explore the benefits of seeking relief through outlets such as bankruptcy, but you might need guidance in navigating the process. 

Cultivating a healthier financial future

Even if bankruptcy might be just the tool with which to seek relief from the trials of debt, making such a major life decision may rarely be easy. With so much at stake, it might be in your best interests to seek guidance on how to tell if bankruptcy might be a viable option in your situation. In doing so, you could obtain much-needed insight in carefully evaluating your options and developing a strategy to reduce or eliminate your debts through the proper outlets.