Bankruptcy Filings are Up, Yet America is Reducing its Debt

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Bankruptcy Filings are Up, However America's Legal System Combines with the Critical Work Flow Automation of Morgan Drexen to Successfully Reduce the Debt of America's Consumers

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“In Nevada, unemployment is a big problem. Consumers are using their credit cards for everyday items such as food and gas. This is leading them into a financial situation that they can’t cope with.”

1 in every 150 people filed for bankruptcy in 2010. Nationwide that equates to a figure of 6600 filings per million individual. Filings in general were up 9% on 2009.

The highest bankruptcy filings are concentrated in the Southwest. Nevada based on population has more than twice the national filing rates. Not a surprise when the state unemployment rate stands at almost 14%. Nevada has also seen a large population increase in recent years. Since 2000 there has been more than a 35% increase in the population.

Nevada-attorney Mehi Aholelei-Aonga says, “In Nevada, unemployment is a big problem. Consumers are using their credit cards for everyday items such as food and gas. This is leading them into a financial situation that they can’t cope with.” Mehi uses the automation of Morgan Drexen. This allows the linking of critical information and workflow from front office to back office, for attorneys throughout the nation.

Despite the high filing rates in Nevada, for resident Roberta Willett bankruptcy was not an option. With three growing children she needed to keep her home. Roberta engaged with an attorney-based debt resolution program. She admits, “I would recommend this to a friend and a family member. It worked for me. I spoke to the attorney and the advice made sense.”

In the Southeast, the filings are closely correlated to the credit card delinquency rates. Georgia has the second highest number of bankruptcy filings per state. They average about 50% more than the national filings rate.

James Whitehead is a Georgia resident who engaged with an attorney based debt resolution program to avoid bankruptcy. “I went over my credit limits on some of my credit cards. I had about $13,000 worth of credit and I was on a fixed income and we stood back and we talked about that and she showed me how she could handle that and get me straight,” says James

James like so many American consumers used his credit cards for everyday living expenses. “I paid off my debt at a nice monthly fee that I could deal with and I could live,” says James. As a disabled veteran it was very difficult to borrow money to re pay his debt. The attorney-based debt resolution program supported by the legal automation of Morgan Drexen reduced his debt. The automation and integrated legal automation provided by Morgan Drexen reduces redundancy and increases productivity for the Law Firms; this allows for control of critical processes while enhancing efficiency without giving up flexibility.

Tennessee had more than 10,000 filings in 2010.

Thom Stark is a resident of Tennessee, engaged with The Williamson Law firm. As a father and husband. Thom headed back to school to study in the hope of bettering his future. Sadly that led to high levels of debt. Reducing his debt by using an attorney guided debt resolution program Thom has very different resolutions for 2011. “Mine are mostly academic at this point but we are looking forward to being able to put money away each month in savings and that’s one of our big ones and exploring life without credit cards,” says Thom.

Lawrence Williamson of the Williamson Law Firm admits, “An attorney knows the legal system and can help the consumer immensely. We have the knowledge and the experience of reducing debt.”

Source - Raychel Harvey-Jones - Morgan Drexen, Inc.

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Raychel Harvey-Jones
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