For residents of Arizona, particularly the Phoenix metro area, the housing crisis and ensuing economic collapse hit close to home—literally. Many people found themselves upside down in a house that was previously well within their means, and even more faced dwindling job security, benefits, and wages. This led to a huge spike in the amount of Phoenix bankruptcy cases as people exhausted their financial means trying to stay afloat.
This year, though, the news seems positive for both residents of Arizona and throughout the United States. The month of March typically sees a rise in bankruptcy filings—nationally, a 25 percent rise from February 2014—as people use income tax refunds to pay lawyers to assist them in getting out of debt. This March saw a 9 percent drop in new Phoenix bankruptcy filings from March 2013, and a 10 percent drop in statewide filings.
While new bankruptcies are growing at slower rate, there are still a large amount of American consumers that face staggering credit card debt, home equity loans, and car loan debt. While jobs throughout the state and nation are slowly growing more stable, the job market remains competitive and selective. Many Valley residents continue to struggle to recover from financial difficulties that hit the Phoenix metro area in the last decade, and are looking for a means to address their finances.
The Phoenix bankruptcy lawyers at Curry, Pearson & Wooten, PLC are optimistic that new bankruptcy case filings will continue to follow trend, but warn Arizona consumers to seek help before their debt becomes an overwhelming burden.