Tennessee Leads Bankruptcy Statistics
By Carmen Dellutri, Attorney at Law on Jul 24, 2007 in Bankruptcy Practice and Procedure, Benefits of Bankruptcy, General Bankruptcy Information
According to Jupiter E-Sources, a company that tracks bankruptcy filings, Tennessee is currently leading the rest of the nation in bankruptcy filings. I am currently writing about the Symptoms of Bankruptcy in separate posts; however, it appears that economically Tennessee is not doing so well. In addition, Tennessee is well known for being a creditor friendly state. This means that Creditors move quickly and have resources available to them that may not exist in other states. Accordingly, the Creditors will use these resources to attempt to collect on delinquent accounts.
In Tennessee about 5.8 residents per thousand file bankruptcy per year. Georgia is in second place with approximately 4.9 residents per thousand, and Alabama is in third place with 4.8 residents per thousand filing for bankruptcy per year.
The interesting part of the story is that many people in Tennessee file Chapter 13, which as we all know is a voluntary debt repayment plan for individuals with regular income. They skip the opportunity to file Chapter 7, also know as straight liquidation. The amount of debt that needs to be repaid will be determined by the Court.
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