Indiana Bankruptcy Blog

Bankruptcy cases have risen across the United States, and Indiana is no exception. In the first two months of 2023, Indiana saw a nearly 20 percent increase in bankruptcy cases, leaving many residents wondering what drives this trend and what it means for their finances. The graph below illustrates the increase in bankruptcy cases in the Southern District of Indiana in 2023 versus 2022.

One factor contributing to the rise in bankruptcy cases is the overall state of the economy. Despite national economic growth, our nation is experiencing unprecedented inflation. Prices are rising, and wages are lagging. Covid-19 relief has ended, leaving many residents in financial trouble.

Another factor contributing to the increase in bankruptcy filings in Indiana is the high consumer debt levels. Residents in Indiana carry a higher amount of debt than the national average, and this burden can quickly become overwhelming. As credit card bills, loans, and medical expenses pile up, many people need help managing their debts.

However, it’s not just residents of Indiana who are struggling financially: businesses are also feeling the effects. With the pandemic causing some industries to slow down or even shut down entirely, many business owners are turning to bankruptcy.  Many business owners took out government-backed “Covid-19” loans that are now being required to be paid back. These businesses are now saddled with massive debts, sometimes well over $100,000

Despite the unfortunate reality that many individuals and businesses are experiencing in Indiana, some steps can be taken to mitigate the impact of bankruptcy. One such step is seeking the guidance of a reputable bankruptcy attorney. An experienced attorney can help individuals and businesses understand their options for debt resolution.

Additionally, it’s essential to have a solid financial plan in place to prevent getting into debt in the first place. Establishing a budget, saving money, and avoiding unnecessary expenses can go a long way in helping individuals and businesses stay financially stable.  Or other times, more is required to fix the situation.  The best option is to file for bankruptcy and then make a new, solid financial plan without being saddled down with debts.

In conclusion, the sharp increase in bankruptcy cases in Indiana in 2023 indicates the financial struggles many individuals and businesses face. However, with the proper guidance and planning, it is possible to recover from bankruptcy and build a stronger financial future.

If you are an Indiana resident struggling to pay your bills, contact us for a free consultation. Bymaster Bankruptcy Law Office can provide you with debt relief options to help.