Bankruptcy Filings Dropped in February, But Remain High Overall

 Posted on April 05, 2013 in Bankruptcy

February 2013 showed a 16 percent decrease in South-Central Texas bankruptcy filings over February 2012, but when measured on a month-over-month basis, filings remain up 41 percent. The San Antonio Express-News is reporting that in the San Antonio division of the U.S. Bankruptcy Court for the Western District of Texas last month, there were 288 bankruptcy filings, as opposed to 343 filings in February, 2012.

In terms of the types of bankruptcy actions being filed, the number of Chapter 7 bankruptcy filings has dramatically decreased. Only 105 Chapter 7 bankruptcies were filed in February, 2013, which is only two thirds of the 158 bankruptcies that were filed in the same time period last year. In a Chapter 7 bankruptcy, an eligible debtor can liquidate many debts altogether, thus giving him or her a fresh financial start. Although some debts are not eligible for discharge through Chapter 7 bankruptcy proceedings, some debtors will be able to discharge all of their debts, depending on their specific financial situations.

On the other hand, the number of Chapter 13 bankruptcy filings was essentially the same from February 2013 as compared to February 2012 – 176 filings as opposed to 180 filings last year. In a Chapter 13 bankruptcy filing, individuals can reorganize their debts, typically over a three to five-year period of time. If the debtor successfully makes payments according to the plan, any remaining balances on those eligible debts are forgiven, or discharged. This type of bankruptcy proceeding allows debtors to pay off all or at least a portion of their debts, while still getting the debt relief that they need.

A qualified San Antonio bankruptcy attorney can be instrumental in determining the best course of action for your financial situation. Call or email our office today and learn how bankruptcy can benefit you and your family.