Number of Bankruptcy Filings Remain High in Indiana and Kentucky

by San Antonio Attorney

While the filings of bankruptcy in the United States have slowed down, the Chapter 7 and Chapter 13 bankruptcies in Kentucky and Indiana continue to surpass the nationwide average.

Bankruptcy judges, credit counselors, lawyers and consumer advocates say that many residents in the state have become part of the underemployment and wage stagnation trend.

Medical expenses still drive consumers to bankruptcy court, though the National Bankruptcy Institute and state experts say residents have smaller amount of problems with mortgage debts and credit card, owing to loan regulations and federal programs to amend housing loans.  The main problem, however, is too many people have jobs that hardly support themselves and their families.  For example, many local residents are working as convenience store cashier or package handler at a depot for $12 per hour.

Basically, monthly income dragged basic living costs for mortgage payments and rent, transportation and food.

There are so many people in the area that lack the instruction and training they require to get a better-paying job.

People with low paying jobs can keep their monthly bills current, but if there are emergencies, such as illness, it is likely that they will incur a huge amount of debt.  Wage garnishments for debt can have a devastating effect on the individual who is working.

It is common for catastrophic events to cause consumers to fall far behind on their monthly bills.

The Administrative Office of the U.S. Courts reveals that bankruptcies have slowed down significantly in the area since 2010.  In Kentucky, the number has declined from 12,406 to 7,462.  In Indiana, the number has gotten smaller from 28,332 to 15,732.

Nevertheless, Kentucky is the eighth and Indiana is sixth in terms of bankruptcy filings in the country.  States with lower than average incomes, such as Indiana and Kentucky, have higher cases of bankruptcy filings.

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