Does A Drop in North Carolina Bankruptcy Filings Breed Optimism?

The people of North Carolina aren’t filing for bankruptcy in the same numbers as last year. The U.S. Bankruptcy Court’s recent report shows a substantial decline in bankruptcy filings compared to last year’s figures. Does this indicate a positive upturn in the economy, or is it a symptom of worse things to come for our beleaguered state?

A drop in bankruptcy filings would appear to be a good thing, but that isn’t always the case. Some people may be hanging on by a thread, but they are reluctant to file, or they don’t have the funds to go forward with a bankruptcy. Others simply have no assets and just walk away from debt without seeking help.

Courts in Greensboro, Durham and Winston-Salem reported 1,217 filings compared to 1,450 filed bankruptcies in the second quarter of last year. In the Triad area, Guilford County had a major reduction in filings from 292 to 222. Forsyth County had a ten percent decrease in bankruptcy filings. Alamance County had a slight increase of five percent and Davidson County a 9.7 percent increase. 

People are out of work, and that means that they can't pay their bills. You know that. It's not that you don't want to stay on top of your debts, but when you have a choice of feeding your family or feeding the coffers of Visa or your local department store, you have to make the only decision that you can.

The national unemployment rate is steady at 7.6 percent, but the North Carolina unemployment rate still stands at 8.8 percent. That’s almost 417,000 North Carolina residents out of work.

If you are one of those people, you probably don’t care about statistics. Other people’s numbers mean diddly-squat to you when you are looking at your negative bank balance and on the verge of losing your home.We give you statistics because they tell a story. Often, it is a tragic one, but it lets you know that you aren’t alone and sometimes it gives you the impetus to make change.

One of the state’s changes that may have affected you negatively was the reduction in North Carolina’ unemployment benefits eliminating the Emergency Unemployment Compensation (EUC) program. The state has reduced the maximum payments for unemployment from $535 to $350 a week and cut the benefit period from 26 weeks to 20 weeks.

North Carolinians are fighting back. Thousands have congregated in front of the North Carolina State Legislative Building for months now for a weekly "Moral Monday" protest to call attention to issues such as poverty and unemployment.

You don’t have to be a protester to fight back. Write letters to your legislators expressing your concern. Make it personal - the people in power need to know your story. They already have the statistics.

Meanwhile, keep paying the bills that you can afford to pay, and the ones that are most crucial.

If you are putting off bankruptcy because you are overwhelmed, or don’t feel that the process can benefit you, reconsider. Debt relief is available by filing a Chapter 7 or Chapter 13 bankruptcy in North Carolina. While some debts will remain, a local North Carolina bankruptcy attorney can work with your creditors and help relieve your stress while you get back on your feet.

Dedicated to helping residents of North Carolina find the best solutions to their debt problems. Don’t waste another day worrying about your debt. Call +1-833-627-0115 today to schedule a free initial consultation to discuss your bankruptcy options.