Arizona Bankruptcy Trends

Arizona’s consumer debt level continues to improve in May. Despite this good news, however, not all experts are optimistic about 2014 as a whole. The U.S. Bankruptcy Court reported that May proved favorable for the Arizona bankruptcy situation, with a decrease in filings from 1,630 in May 2013 to 1,439 this May. That is a 12 percent decrease. Despite this decrease, May filings were up slightly compared to April filings. Though May was not as low as last month, Arizona is in its 39th consecutive monthly improvement on a year-over-year basis.

Arizona Bankruptcy Declines, But Will Trend Continue?

Statewide, there are similar reports. According to these reports there were 1,945 filings in May, a 12 percent decrease compared with May 2013. Despite this decrease, May has the highest number of state-wide bankruptcy filings so far in 2014, leading to concerns that numbers may increase over the course of the year. Other areas show improvements throughout the state as well. In the first quarter of 2014, credit card debt decreased by one percent compared with the previous year. Credit card defaults have also dipped, with a typical credit card holder owing about $6,628 on average compared with $6,980 in 2013. It was noted that the first quarter can be somewhat misleading as consumers often use tax returns during the first quarter to pay down credit card debt. Odysseas Papadimitriou, CEO of CardHub.com, is not optimistic about the report. He fears that people are quickly forgetting some of the financial lessons learned in the recession. In fact, he projected a more dismal future for debt, predicting an eight percent increase in 2014. Despite this less than optimistic outlook, Kiplinger cited Phoenix as one of the best cities, number eight on the list to be exact, for young professionals who are beginning their careers. For those who have found themselves deeply in debt, bankruptcy can be a viable and beneficial option. Nationally, the number of consumers using bankruptcy to alleviate credit card debt may increase in the coming months. If you have found yourself deeply in debt and do not know your options, seek the counsel of an experienced Arizona bankruptcy lawyer. The Oswalt Law Group in Phoenix, Arizona, offers years of experience with Arizona bankruptcy law, aiding many clients in choosing the best debt relief options for them. Each debt case is unique, and should be approached differently. The Oswalt Law Group takes a hands-on approach to each case, offering individualized solutions to your debt problems, including alternatives to bankruptcy. Contact the Oswalt Law Group today for a free initial consultation.