If you are considering filing for Chapter 13 bankruptcy, it is critical to thoroughly go over your options. If you come to the conclusion that this strategy makes the most sense, make sure you approach the process carefully. Moreover, do not let negative emotions or unwarranted reservations interfere with your path to financial freedom. For example, you should not feel ashamed for finding yourself in this position or clearing debt through bankruptcy.
In fact, recent statistics show an increase in the number of people who have filed for Chapter 13 bankruptcy.
Statistics on Chapter 13 bankruptcy filings
The United States Courts published data on bankruptcy, showing a notable surge in Chapter 13 filings. During 2022, more than 157,000 Chapter 13 filings occurred. This reflects a 30.9% increase in comparison to 2021, which saw 120,002 Chapter 13 bankruptcy filings.
While Chapter 13 filings increased, total bankruptcy filings went down by 6.3% from 2021 to 2022. In fact, Chapter 7 filings decreased from 288,327 in 2021 to 225,455 over the course of 2022.
Moving forward with Chapter 13 bankruptcy
These statistics shed light on the prevalence of Chapter 13, and you should not feel alone if you find yourself in this position. A successful Chapter 13 filing could provide you with a fresh start, not only in terms of your finances but also with respect to your mental health and other facets of your life. It is crucial to prepare for Chapter 13 bankruptcy and recognize the steps you need to take after filing a petition.