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Bankruptcies have fallen in large numbers, a surprising twist of events. There has been no explosion in bankruptcy cases, and there was a dramatic drop-off in cases in 2021.
This per capita bankruptcy rate decreased from 2016 to 2019, with a rate of 2.5. The 30% drop in filings between 2019 and 2020 can be attributed to government benefits, evictions, and foreclosure moratoriums.
These numbers may not be the same in every state. Alabama had the highest number of bankruptcy filings per 1000 residents in 2017, but this has not always been the state with the most bankruptcies. Alaska is at the opposite end of the spectrum, with 0.31 filings for every 1,000 residents.
Following Alabama (3.13), Nevada (2.57), Tennessee (2.40), Indiana (2.37), Georgia (2.12), Mississippi (2.33), and Kentucky (2.00), Utah (1.97), Florida (1.96), and Delaware (1.83) are also included in the rankings. The District of Columbia (0.50) is at the opposite end of the rankings, followed by Alaska (0.31), Vermont (0.44), and Maine (0.48).
As readers can see, Florida ranks 9th with 1.96 filings for every 1,000 residents. Our readers in Florida will find a key insight that although bankruptcy rates are lower nationally, this is only sometimes the case in Florida.
This post was written by Trey Wright, a Florida Bankruptcy Lawyer! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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