Minnesota bankruptcy attorneys, William Kain and Margaret Henehan, are seeing a notable increase in the number of bankruptcy cases in Minnesota. Our personal findings that bankruptcy is on the rise, is reflected across the nation as the end to pandemic aid has left individuals and businesses struggling. According to a CBS News Money Watch article, “Total bankruptcy filings in January shot up 19% in January to 31,087, up 19% from a year ago, according to data from Epiq, a legal research firm. The number of Americans who filed for bankruptcy across Chapters 7, 11 and 13 shot up 20% in January from a year ago.”
At Kain + Henehan, our lawyers see individuals and families stressed over medical debt, job loss, and credit card debt. Their financial struggles have them avoiding aggressive debt collectors, making hard choices about car payments, housing payments, and other essentials, and losing sleep over the future. Many are seeking solutions and one option is discussing their situation with an experienced bankruptcy lawyer.
At Kain + Henehan, we have developed a boutique firm to offer a more personalized and compassionate experience for our clients. Specializing in individual bankruptcy, such as Chapter 7 and Chapter 13 bankruptcy, we bring our knowledge and expertise to your assistance. With our guidance, you can determine if filing bankruptcy is the best option for you, what the pros and cons may be, and how we can take care of properly filing for you, easily and efficiently.
Increase in Number of Bankruptcies Seen By Kain+Henehan
During the spring season, there is typically an increase in the number of bankruptcies filed. However, this February, our increase was already more than anticipated. According to bankruptcy attorney Bill Kain, within our practice, there was a “14% increase in personal bankruptcies filed in February 2023.” In spite of record low unemployment, people are finding that meeting financial obligations and paying off debt continues to be a challenge.
Major businesses have filed their own bankruptcies and the job loss for those employees may not be easily replaced or at the same level of income. In Minnesota, for example, the wedding dress chain, David’s Bridal, appears to be closing its Minnesota retail locations amid their bankruptcy.
Rise in Interest Rates
The rise in interest rates in 2022 was challenging for people trying to cope with their debts and pay their living expenses. According to Forbes, mortgage rates are coming down but folks need to continue to watch inflation and the Fed (the Federal Reserve)for clues of what 2023 rates will look like.
With high interest rates, in many cases, people may fear losing their home or be unable to afford to buy a house. Increases in rental costs and and job losses also add to the financial crisis. If you have used credit cards to cover expenses or an unexpected emergency, you can easily get in over your head financially.
In many categories, we are seeing inflation having a big impact on how much money a family needs to pay for everyday expenses. Perhaps having a $400-a-month car payment was manageable before. However, when combined with inflation on the cost of groceries, utility bills, and other expenses, it can quickly become unmanageable. This can be overwhelming for people who are in jobs with little ability to negotiate a raise to match inflation. A small raise won’t seem like much when eggs can cost over $6 a dozen.
With so many illnesses related to the pandemic and long haul COVID, and the unfortunate chance of contracting a serious disease like cancer, many people are experiencing an increase in medical bills. This debt can include doctor bills, hospital bills, and ongoing treatments. If you lost your health insurance due to job loss or simply do not have health insurance, your medical bills can create extremely expensive medical debt that you may not be able to pay off.
Schedule a Consultation With a Minnesota Bankruptcy Lawyer
If you are facing overwhelming debt and stress, it may be time to schedule a consultation with the Minnesota bankruptcy lawyers of Kain + Henehan. As bankruptcy attorneys, we can provide valuable insight into your financial situation and help you understand your options for relief. During the consultation, we will review your debts, assets, income, and expenses to determine if bankruptcy is right for you. More importantly, we will listen to you with respect and empathy. We understand facing the prospect of bankruptcy can be scary so meeting with a bankruptcy attorney should not be. Our goal is to make the process easy and comfortable from the first phone call.
To schedule a consultation with one of our bankruptcy lawyers, contact Kain + Henehan today, by calling (612) 438-8006 or filling out our online form.