The National Bankruptcy Research Center found that the rate of personal bankruptcy filings in Georgia increased by 22 percent from January through November 2009 in comparison to the same period in 2008. Nationally, the rate increased by 32 percent.
According to the Center, Georgia came in 3rd, behind Nevada and Tennessee, as the state with the highest rates of personal bankruptcy. Alaska, District of Columbia and North Dakota enjoyed the lowest rates.
The state with the highest increase in filings was Arizona, 80% increase, followed by Nevada, California, Wyoming, and Utah, all with about 60 percent jump.
Georgia had seven counties in the top ten with the highest bankruptcy filing rates in the nation. Shelby County in Tennessee, Memphis came in first, but Georgia’s Newton and Barrow followed closely with filing rates more than two and half –times the national average.
Georgia has always been one of the top bankruptcy states. One of the reasons might be that Georgia is a “non-judicial foreclosure” state where the foreclosure process takes place outside of the courts.“There is no court or government supervision (...).No state has a faster process,” according to the Augusta Chronicle. Filing for bankruptcy is one of the very few ways for homeowners to stop the foreclosure process in states with non-judicial foreclosure laws.
The Average Bankruptcy Filer
The average consumer seeking bankruptcy protection last year was a married white homeowner with an annual income of $43,000, according to statistics compiled by Consumer Credit Counseling Service of Greater Atlanta. This typical consumer has an average of $39,000 in unsecured debt, usually credit cards, on top of secured debts, usually a mortgage and car payment that cost more than $1,600 a month.
Most have run out of options for getting money from anyone but family and friends: The average credit score of those seeking bankruptcy is 529.
Last year's average bankruptcy filer had debts exceeding assets by about $73,000. In 2008, the average filer wasn't quite so much in the red, with debts exceeding assets by $57,000.
Associated Press Source
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