October 2022 bankruptcy filings increased 27 percent from October 2021 bankruptcy filings – from 10,767 to 13,627 according to Epiq Bankruptcy, a provider of bankruptcy data, technology and services. Bankruptcy filings have increased in part because of the high cost of food, clothes, gasoline, medicine and housing. Inflation is hurting many Americans and has pushed some into bankruptcy.
Chapter 13 bankruptcy relief is typically sought by individuals who are struggling to manage their debts and need court-ordered help to force creditors to restructure debts. For example, Chapter 13 bankruptcy relief is often used to help a homeowner struggling with foreclosure keep possession of the family home and establish a repayment repayment plan to repay the mortgage deficiency (i.e. arrearage). But Chapter 13 bankruptcy can also save a car, truck, or van from repossession. Sometimes an individual can use Chapter 13 to minimize unsecured credit card debt and medical bills by paying pennies on the dollar. Each case is unique and the repayment plan depends on the individual finances of the person filing bankruptcy.