If you are thinking about filing for Chapter 7 bankruptcy, you probably have many different questions. Aside from legal issues related to bankruptcy, you could feel hesitant because you think that people will look down on you for filing a bankruptcy petition, or you could worry about how bankruptcy might affect you years down the road.
It is important to understand that many people file for bankruptcy each year. Reviewing statistics on Chapter 7 bankruptcy can help shed light on the prevalence of these cases and help remind you that you are not alone.
Chapter 7 bankruptcy statistics
According to the United States Courts, the number of Chapter 7 bankruptcy filings decreased in 2020 when compared to previous years. During 2020, 378,953 Chapter 7 filings took place, while more than 480,200 occurred over the course of 2019. In 2016, more than 490,300 Chapter 7 bankruptcy filings took place in 2016.
Reviewing other statistics on bankruptcy filings
In 2020, more than 544,000 bankruptcy cases arose in the U.S. Among these bankruptcies, most involved non-business bankruptcy (522,808). Over 156,000 Chapter 13 bankruptcy filings occurred in 2020, and the number of Chapter 11 bankruptcies (8,333) increased by 18.7% in comparison to 2019.
If you are preparing to move forward with Chapter 7 bankruptcy, or another type of bankruptcy, you need to thoroughly review your options. Make sure you understand how the bankruptcy process works and take steps to increase your chances of a favorable outcome. Moreover, try to remain calm and focused, and do not let unwarranted concerns prevent you from working toward a brighter financial future.