The most recent annual publication of bankruptcy data is out from 2011. Compared to 2010 there was an 11 percent drop in bankruptcy filings, a 23 percent drop in filer assets, a25 percent drop in filer liabilities and a 28 percent incidence of repeat filers.
Despite of what many debt relief company sites claim that a chapter 7 bankruptcy is not common, from the 2011 data we also know that 70 percent of the consumer bankruptcy filings in 2011 were actually chapter 7 bankruptcy.
If we look closer at the detail of the final U.S. Courts report we learn some other information as well.
About 30 percent of chapter 7 bankruptcy cases included a reaffirmation agreement for debtors to keep a secured item through their bankruptcy, like a car or truck.
Chapter 13 repayment plans appear to have improved in the number of people actually completing them. Of chapter 13 plans started in previous years, by the end of 2011, 22 percent of the chapter 13 cases were closed after full payment under the plan. This does not account for those that failed and were converted to a chapter 7 for debt discharge.
Some areas of the country showed much higher success rates with chapter 13 bankruptcies. For example, in the Eastern District of North Carolina the rate was 58 percent and in Northern District of New York the rate was 54 percent.
Nationwide, failure to make plan payments was cited in 48 percent of cases as the reason for dismissal, down from 49 percent in 2010.
The median amount of time it took to resolve cases was 117 for a chapter 7 bankruptcy and 474 for a chapter 13 bankruptcy.
Of the chapter 13 bankruptcies filed, twenty seven percent had some type of bankruptcy filing in the previous eight years. – Source
The amount of data and performance transparency us refreshing from the U.S. Courts, especially since it is lacking in general from credit counseling and debt settlement providers.
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