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Is bankruptcy a popular option in Illinois?

On Behalf of | Feb 17, 2022 | Bankruptcy |

Over the past two years, the media has claimed that a bankruptcy tsunami was right around the corner. Indeed, at least once a month, we were told that there would be a flood of bankruptcies at any moment. Those warnings now seem largely alarmist as no bankruptcy flood ever hit our shores. However, for those thinking about bankruptcy now, they may have the impression that they are alone. However, at least in our state, that is not the case.

National bankruptcy rates

Despite what media pundits may have predicted, bankruptcy rates across the United States are down, falling yet again last year. From 2016 to 2019, the United States bankruptcy rate held pretty steady at under 2.5 filings per 1,000 residents. In 2020, per capita bankruptcy rates fell to 1.71, a 30% drop from the year prior. And, in 2021, they fell again to 1.29, according to the American Bankruptcy Institute. These numbers are for both Chapter 7 and Chapter 13 bankruptcies.

Differences between states

ABI pointed out that, while overall bankruptcy rates have fallen, individual states have wildly different rates. For example, in 2021, Alabama had a rate of 3.13 per 1,000 residents, and at the bottom, is Alaska with a 0.31 rate per 1,000 residents.

Methodology

ABI tracks Chapter 7 and 13 bankruptcy filing rates throughout the United States. They release these rates every month, beginning in 2012.

What about Illinois?

In our state, the bankruptcy rate was 2.33 filings per 1,000 residents in 2021. That placed us behind Alabama (3.13), Nevada (2.57) and Tennessee (2.40) with the fourth highest per capita bankruptcy rate. As such, for our Geneva, Illinois, readers thinking about bankruptcy, know that they are not alone in our state looking for fresh start.