With the post pandemic economy many people expect an Increase In bankruptcy cases in Oklahoma this year. Many people live paycheck to paycheck and struggle to make ends meet. With increasing inflation and a limited number of jobs, many people are worried about a potential increase in the number of bankruptcies likely to occur in 2023. Some people will deplete their savings and need to declare bankruptcy. Declaring bankruptcy can have an adverse impact on an individual’s life and livelihood.
We predict that the number of bankruptcies filed in 2023 will increase dramatically. This could lead to slowdowns and delays in processing in bankruptcy court. It may become more challenging to find an attorney who will have time to represent you if you wait until many people are filing. If the bills are stacking up and you think that soon you may not have any other choice, decide today.
Common Causes Of Bankruptcy in Oklahoma
There are some common factors behind why people decide to file for bankruptcy. The most common reason people are forced into bankruptcy is divorce. Divorce causes one partner to be left finding a way to pay their expenses when they maybe haven’t had to bear the full weight of a household’s living expenses in many years.
Another common reason many must file for bankruptcy is medical bills stemming from a disability or illness. Usually, it is a combination of medical bills along with everyday bills that still must get paid even though the injured individual was not working for some time during the illness.
Finally, the third most common reason individuals need to file for bankruptcy is that they made poor financial decisions at some point in their lives. These decisions usually include student loans, buying a vehicle, and buying a house. When individuals spend more than they have in their budget on any or all of these items, even a small emergency like a car breaking down or an appliance repair can cause significant financial stress.
Increased Inflation Makes Things Even Harder
Perhaps the biggest reason the increase in both chapter 7 and chapter 13 bankruptcy cases this year is the much higher inflation rate. Inflation makes the cost of everything in the economy more expensive. Groceries and necessities of life (e.g., gas for the car) come with higher price tags. Add to this the fact that many big items like home and car loans will dramatically increase interest rates, and the challenge becomes greater.
Many people have adjustable-rate mortgages. An adjustable-rate mortgage allows the banks to adjust the interest rate on an individual’s mortgage at certain periods throughout the loan. If one of those periods happens to be in 2023, the interest rate will likely skyrocket. When the interest rate on the loans rises, monthly payments will be bigger.
Since everyone’s cost of living is increasing and the price they pay monthly for a house and car increases with interest rate rises, money won’t seem to go quite as far. When this happens, bills pile up, and eventually, individuals might be required to declare bankruptcy.
Bankruptcy May Help in Oklahoma
Even with increasing inflation rates and the dramatic increase in bankruptcies anticipated this year, filing for bankruptcy may help consumers catch up and avoid more significant financial ruin. Depending on the type of bankruptcy you decide is best for you and your situation, you may be able to set up a repayment plan which is easier to manage or even wipe out part of your debts entirely if you qualify.
Some people have negative ideas associated with the idea of filing for bankruptcy. Still, it may be worth learning more about the requirements if you struggle with regular payments due to inflation and rising interest rates. If it is something you are considering, it is crucial to act quickly so you aren’t delayed by the increased number of individuals who may be declaring bankruptcy in 2023.
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Our Tulsa Bankruptcy Attorneys Can Help
With the large increase in bankruptcy cases expected in Oklahoma this year you may want a free consultation. If you are wondering how filing for bankruptcy can help you, contact the skilled Tulsa Oklahoma bankruptcy attorneys at Kania Law Office. Rest assured that we are here to guide you through your bankruptcy proceeding as smoothly as possible. Call our offices at 918-743-2233 or visit us online for more information.