Unemployment, foreclosures could cause bankruptcy filings to rise again
If the unemployment rate and other economic indicators have any bearing on bankruptcy filings then the good news of a drop in bankruptcies may not last for very long.
If the unemployment rate and other economic indicators have any bearing on bankruptcy filings then the good news of a drop in bankruptcies may not last for very long.
While bankruptcy filings have decreased across the country when compared to this time last year, they may still need to catch up to the current state of the economy before any accurate reading can be made, according to The Street.
"There is no guarantee, however, that bankruptcies will steadily decrease," the Total Bankruptcy blog says, according to the news source. "After all, the housing market is still glutted with foreclosure properties and home prices don't seem to be rising. As a new wave of foreclosures begins to affect homeowners, combined with sluggish growth in the jobs sector, the need for bankruptcy protection could climb or remain constant for a few years to come."
The rising unemployment and underemployment rates could also play a role in the fate of bankruptcy filings as time goes on. But currently, bankruptcy rates are on the decline, with Nevada, the owner of the highest filing rate in the country since 2010, reporting a 16 percent decrease this year compared to last.
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