The American Bankruptcy Institute recently released a very interesting survey regarding the current number of bankruptcy filings for 2010.

According to the survey:

• The total number of bankruptcy filings for the first half of the year has now reached 770,117.
• The total number of Chapter 7 bankruptcy and Chapter 13 bankruptcy filings through June 2010 was roughly 14 percent higher than the same time last year.

These results can easily be viewed as a reflection of our nation's current economic woes, dubbed the "Great Recession" by most major media outlets.

To illustrate, many Americans have been laid off by their employers over the course of the past year due to record financial losses. Unfortunately, many of these Americans were unable to find subsequent employment and encountered great financial difficulties, including the inability to pay their bills or mortgage. As a result, many decided to pursue the fresh financial start offered by either Chapter 7 bankruptcy or Chapter 13 bankruptcy. 

The Great Recession is undoubtedly responsible for the dramatic rise in bankruptcy filings. However, what are the other reasons that a person would file for bankruptcy (outside of historically bad economic times)? 

According to a Harvard University study, the five main reasons that a person considers filing for bankruptcy are:

1. Medical Expenses
2. Loss of Jobs
3. Credit Issues
4. Divorce/Legal Separation
5. Unexpected/Unmanageable Expenses

Moreover, a study by Ohio State University's Center for Human Resource Research revealed that certain sociological factors, including family size and marital status, might affect whether or not a person considers filing for bankruptcy. 

Whatever your reasons or the nation's financial status, bankruptcy can provide a much-needed fresh start. Chapter 13 bankruptcy enables you to create a manageable repayment plan to pay off debtors, while Chapter 7 bankruptcy enables you to discharge seemingly unmanageable debt.

The following post was for informational purposes only and is not to be construed as legal advice. Contact an experienced legal professional to learn more about your bankruptcy or debt relief options.

Related Resources:
  
• Why Bankruptcies Continue to Skyrocket (GoBankingRates.com)