The economic fallout from the ongoing health crisis has touched every corner of the United States. However, even in a reeling nation, Indiana stands out in one measure of one economic hardship – personal bankruptcies.
Organizations monitoring the amount of people filing for personal bankruptcies, whether it is Chapter 7 or Chapter 13, have ranked Indiana in the top five in terms of filings per capita. There a few different reasons Indiana has sustained more economic damage than other states. It should be noted that many of these issues were present before the present situation and have simply been exacerbated during the past several months.
What are the reasons behind the filings?
Firstly, Indiana has one of the highest poverty rates in the United States. Many Hoosiers were already on the financial brink before the current health crisis. Secondly, Hoosiers already had a difficult time accessing safety net benefits and these problems have continued to exist during the pandemic.
In sum, Indiana already had a disproportionately high number of financially distressed residents, and these residents have had a more difficult time accessing support funds than those of other states.
A chance for a new beginning
Although just the word bankruptcy strikes fear into the hearts of many, the bankruptcy process should be seen as a means to a fresh start. In fact, if done properly, bankruptcy can be a path back to financial freedom. An experienced bankruptcy lawyer is intimately familiar with the nuances of bankruptcy law and the bankruptcy process. Bankruptcy isn’t one-size-fits-all. A bankruptcy lawyer can evaluate the client’s objectives and formulate a strategy that ensures they reap the benefits of a new beginning.