Personal bankruptcy filings in Georgia jumped 24% last year. Fresh numbers from the National Bankruptcy Research Center show Georgia has the second-highest personal bankruptcy rate in the country.
The big percentage jump in filings is largely attributable to national economic factors--so says Jack Williams, a professor of law at Georgia State University and resident scholar at the American Bankruptcy Institute.
Williams says as it turns out, the factors that make Georgia attractive for residents can also support and influence a spike in bankruptcy filings.
"Certainly there’s a local Georgia flavor to the rate of filings and we tend to cluster in the top-10/top-5 of bankruptcy filings per household. That’s not something that we strive to do, but unfortunately we end up being in that area."
Many who flock to Georgia look to start their own business, but economic reality is many will fail. The state draws many boomers 55-and-older, but with rising medical costs, many ‘under’ or ‘non’-insured residents end-up filing for bankruptcy. And then Williams points out, there are Georgia’s foreclosure laws, which allow the process to move quickly--often spurring bankruptcy filings.
"There’s an argument that’s made that the rate of foreclosures here both in number and the time from default to the actual sale of the property...may influence the rate of bankruptcy filings. In many instances, bankruptcy is the only possible opportunity to keep one’s home, usually through a Chapter 13 bankruptcy filing."
But Williams says that while bankruptcy is a negative, the process is a necessary part of a robust, competitive market.
"There are going to be economic winners and losers. What bankruptcy does is provide a system by which we can take the economic losers and bring them back in the system again, so that they can try again and begin their economic life anew."
Williams says Georgia is among a handful of states in the Southeast and Sunbelt, experiencing a population increase recently, bringing with it bankruptcy growing pains.
The big percentage jump in filings is largely attributable to national economic factors--so says Jack Williams, a professor of law at Georgia State University and resident scholar at the American Bankruptcy Institute.
Williams says as it turns out, the factors that make Georgia attractive for residents can also support and influence a spike in bankruptcy filings.
"Certainly there’s a local Georgia flavor to the rate of filings and we tend to cluster in the top-10/top-5 of bankruptcy filings per household. That’s not something that we strive to do, but unfortunately we end up being in that area."
Many who flock to Georgia look to start their own business, but economic reality is many will fail. The state draws many boomers 55-and-older, but with rising medical costs, many ‘under’ or ‘non’-insured residents end-up filing for bankruptcy. And then Williams points out, there are Georgia’s foreclosure laws, which allow the process to move quickly--often spurring bankruptcy filings.
"There’s an argument that’s made that the rate of foreclosures here both in number and the time from default to the actual sale of the property...may influence the rate of bankruptcy filings. In many instances, bankruptcy is the only possible opportunity to keep one’s home, usually through a Chapter 13 bankruptcy filing."
But Williams says that while bankruptcy is a negative, the process is a necessary part of a robust, competitive market.
"There are going to be economic winners and losers. What bankruptcy does is provide a system by which we can take the economic losers and bring them back in the system again, so that they can try again and begin their economic life anew."
Williams says Georgia is among a handful of states in the Southeast and Sunbelt, experiencing a population increase recently, bringing with it bankruptcy growing pains.
