According to statistics provided by the U.S. Bankruptcy Courts, almost 800,000 people filed for bankruptcy during 2016.
Which Type of Bankruptcy is Most Popular?
Chapter 7 bankruptcy filings make up the vast majority of all bankruptcy cases, and nonbusiness cases far outnumber business bankruptcies. Of the 794,96 total bankruptcy filings during 2016, 770,846 were nonbusiness bankruptcies. The breakdown by type of bankruptcy for nonbusiness cases was as follows:
- 475,332 Chapter 7 cases
- 1,118 Chapter 11 cases
- 294,396 Chapter 13 cases
As you can see, most bankruptcy debtors choose a Chapter 7 filing. This is likely because Chapter 7 can result in a bankruptcy discharge of many types of debt—including credit card debt, medical bills, and payday loan debt—without requiring a repayment plan. Chapter 7 debtors may have to surrender property to satisfy their creditors, but bankruptcy exemptions protect some of your property from seizure, and many debtors are able to file Chapter 7 without losing any property.
Chapter 13 also makes up a significant portion of bankruptcy cases. One reason debtors choose Chapter 13 is because they make too much money to qualify for Chapter 7 and cannot pass the means test. Chapter 13 also allows debtors to keep their homes and make up mortgage payments over the life of their three to five year bankruptcy repayment plan.
Bankruptcy Filings in Georgia
In Georgia, there were almost 50,000 bankruptcy filings during 2016. Chapter 13 bankruptcies were actually slightly more common than Chapter 7 cases in Georgia, which contrasts the national trend for bankruptcies.
If you need financial help, you are not alone. Many people across Georgia and the entire U.S. are using a Chapter 7 or Chapter 13 bankruptcy to eliminate debt and regain their financial freedom. You have the power to stop the missed payments and calls from bill collectors, but you have to ask for help first.
At the Law Office of Barbara B. Braziel, we are here to give you the fresh start you deserve. Call us today at (912) 351-9000 or contact us via the web to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.