The good news is that statistics for the first nine months of 2012 show that Utah bankruptcies were falling. According to the American Bankruptcy Institute, there were about 6 petitions per 1,000 people. This compares to the average nationwide rate of 4 per 1,000 people. The highest rate for bankruptcies is in Nevada with 11 per 1,000 people.
According to the Utah Bankruptcy Court, filings dropped by 13% in the first nine months of 2012. Some believe that the change in bankruptcy laws has caused this decline. There is also a natural "regression to the mean" after a high level of bankruptcies were filed in 2005.
However, the economy continues to struggle. With jobs being outsourced overseas, unemployment rates are increasing. Food and energy prices are rising. Credit card, car and home loan debts are piling up. The number of people behind in mortgage payments is at record levels. Some are just waiting for the banks to foreclose on their properties.
More Utah citizens are contemplating ways to regain control of their financial budgets. Many people are still having a tough time making payments. The problem of too much debt and too little credit is not going to magically disappear.
Debt is not only a strain on finances but also on personal relationships. Eventually, creditors will start to call debtors. A family must cut back on expenditures. This can lead to stressful times.
Most people don't know their consumer rights. A Salt Lake City Lawyer can tell you what creditors can and cannot do. Know your legal rights. Don't make a mistake because you don't understand the law.
Some news agencies have reported that people are so indebted that they are waiting for tax refunds to file for bankruptcy. An estimated 32% of Utah residents who file for bankruptcy file for Chapter 13, which involves a restructuring plan. The other 68% of Utah residents file for Chapter 7, which is the liquidation of assets by a court trustee.
A good lawyer can help debtors decide which plan best fits their circumstances. The wise are proactive in regaining control of their budgets. Debtors should contact a good Salt Lake City Bankruptcy Lawyer to consider their options.