A recent story from a newspaper in Maine notes that there has been a decline in the number of bankruptcy filings there. Because bankruptcy law is federal, many concerns regarding filing bankruptcy are the same, no matter where you live. The author notes that while the number of filings hasfallen in Maine, as they have in Wisconsin, there is no clear reason.

Most likely, multiple factors have all played a role, including better employment numbers, the Affordable Care Act and student loans. There are other possible reasons, such as mortgage lenders being more restrictive in their underwriting practice, which limits the risk of defaults and foreclosures and the need for individuals to file bankruptcy to protect their homes.

Another fallout from the 2008 financial crisis was that it made individuals more risk averse when taking on debt, such as credit cards. Student loans make up a large proportion of debt held by individuals, but because of the difficulty in obtaining a bankruptcy discharge, many with that debt burden are unlikely to file for bankruptcy because they may not be able to discharge much of their total indebtedness.

Sadly, for some, they may hear stories of how expensive it is to file a bankruptcy and never even investigate the matter, believing they could not afford it. While some aspects of bankruptcy have become more expensive, if you are suffering from debt that is crushing and overwhelming, you should check with a bankruptcy attorney to find out the actual cost structure for the type of bankruptcy that could help you the most.

If you are struggling with this type of debt, it is important to know that if you complete a Chapter 7 or a Chapter 13, you receive a genuine discharge from the debt, which may be your fastest path to financial recovery.