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Posted by: Maricopa Lawyers on Sep 24, 2014

Favorable bankruptcy trends continue to smile upon the Phoenix metro area since July. Bankruptcy filings have been reported down 14 percent since July 2013. August marks the 42nd consecutive month of year-to-year improvement.

The news should be considered pertinent to many Valley residents despite reports that show many still continue to struggle. While many businesses and property owners continue to recover from a lengthy recession, Arizona is far from out of the woods at this point.

Still, the news suggests progress is being made every month. All of statewide bankruptcies have declined at a rate of 11 percent beginning in July 2013 – 2014, from 1,764 to 1,981 in July the previous year.

This trend is also evident across the nation, as filings are down some 12 percent since July – a statistic provided by Epiq Systems and the American Bankruptcy Institute. The filing rate is actually moving to rate not previously experienced since prior to the recession.

American Bankruptcy Institute’s executive director, Samuel Gerdano, reports, “Bankruptcy filings for this year will likely fall below 1 million for the first time since 2007.” Despite Gerdano’s vote of confidence, this progress doesn’t always translate to better off consumers.

It’s likely that many consumers are turned off from pursuing bankruptcy as a viable option as they lack the financial resources to secure an attorney and pay for court costs. Gerdano has acknowledged that “high filling costs” remain a significant hurdle for those still in recovery mode.

Current economic numbers do suggest many Arizonans are still struggling to keep above water. Credit bureau Experian recently released a report that revealed Arizona holds the second-highest auto-repossession rate in the entire country, falling just behind Nevada. The Urban Institute has also concluded that nearly 29 percent of Arizona households wield debt that’s been reported to collection agencies – 4 percent higher than the national average.

Original story and quotes provided through AZ Central