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Experts predict rise in bankruptcies in 2014

Many Colorado residents are thankful to have their job, even if some might not particularly enjoy what they do on a daily basis. The steady stream of income is vital for the person to pay monthly bills and earn a living. Accordingly, the thought of losing a job can be frightening, as the individual would undoubtedly struggle to make payments after the loss of income.

Oddly enough, however, some believe a person is actually less likely to be filing for bankruptcy if they are relying on unemployment benefits, as opposed to when the person has a job and earns an income. This is because those relying on unemployment benefits may have less to protect, as opposed to the person who does not want to have his or her earnings garnished.

However, unemployment continues to be one of the main causes of individuals filing for bankruptcy. In any event, some experts have predicted a possible increase in bankruptcy filings in the coming year.

Over the past few years, bankruptcy filings around the country have been decreasing, as the nation continues to revive from the struggling economy. The nationwide rate dropped about 12 percent in the number of filings from 2012 to 2013. Some are saying those rates will began increasing, as they point to the loosening of the credit markets that will allow more individuals to obtain loans and get into debt.

No matter what the motivation for an individual, those considering filing for bankruptcy should meet with an attorney to determine if bankruptcy is right for them. They can then discuss their individual circumstances and decide whether it makes sense for them to file for bankruptcy, and they can determine which type of bankruptcy might be best.

The individual can also ensure he or she complies with the prerequisites to filing for bankruptcy, such as taking the necessary credit counseling. Ultimately, no matter what the state is of the national economy or the nationwide bankruptcy filing rates, bankruptcy is a decision that must be made on a personal level.

Source: The Tennessean, "Bankruptcy decline could reverse amid better jobs picture," Jamie McGee, Jan. 12, 2014

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