In Maricopa and across the entire state of Arizona, financial challenges are unavoidable. In years past, many people have had to try to get back on stronger financial footing by filing for bankruptcy. Given the fluctuating state of financial matters, this is often the sensible choice. When there is a struggling economy and unemployment for one reason or another, people may fall behind on their bills causing more problems and mounting debt. This is when some consider strategies like bankruptcy to improve their financial situation.
In the current climate, bankruptcies in Arizona are declining. This is a signal that debt allocation is improving, but there is also a troubling note of borrowing increasing. In six counties including Maricopa, the number of bankruptcy filings dropped to 1,060 in June. That is a reduction of 15 percent from one year ago. The number in the Phoenix area dropped to slightly more than 6,000. Hiring is gaining steam, and the interest rates are stabilized. With that, people are better able to pay their debts. This is evidenced by a reduction in credit card delinquencies. Delinquent payments on home equity loans and lines of credit are also reducing. With greater borrowing, however, comes the possibility that eventually the number of bankruptcies can again rise if the economy experiences a downturn.
While the current state of the economy in Arizona appears to be getting better, there will always be people who face financial hardships and will consider filing for bankruptcy. Situations like this can be due to numerous reasons, and it is nothing to be ashamed of. Whether it is a decision to try and save a personal business or to save one's home, bankruptcy may be a viable strategy when bills become overwhelming.
With the number of people getting back on firmer ground with their finances, there are still a significant number of bankruptcies filed across the state in spite of the clear reduction of filings and enthusiasm about the economy. Those who believe they might need to reorganize their debts may want to think about filing for bankruptcy, and may want to consult with an attorney to discuss the most appropriate options to suit their individual needs.
Source: azcentral.com, "Arizona bankruptcies down sharply," Russ Wiles, July 13, 2015
