Fewer residents turn to bankruptcy

Category: Bankruptcy Law Published: Saturday, 03 January 2015 Written by Admin

Fewer local families made the difficult choice to file for bankruptcy when they couldnt afford their bills, with this year poised to have the lowest number of filings in the last six years.

Through November, 635 people filed for bankruptcy in Johnson County, according to statistics by the Southern District of Indiana in the United States Bankruptcy Court, which is made up of 60 counties in the lower half of the state, including Johnson County.

The number of people filing bankruptcy in the county has gone down every year since 2009 when 1,225 residents filed. So far this year, the number of filing is the lowest since 2007, when more than 800 people filed for bankruptcy.

Bankruptcies are down in 2014 for multiple reasons, but a major factor is that the economy is rebounding from the recession that hit the nation in 2008, said Brian Schellenberg, an attorney at the Bankruptcy Law Office of Jon Brown.

Residents are starting to find jobs again, and are able to make payments and pay off student loans or medical bills, he said.

But the decrease in people filing could also be false optimism, attorney Jason Wischmeyer of Wischmeyer Law Office said.

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