People love to see patterns in life. Whether it be politics, sports or weather, people want to see if they can spot a recurring theme in everything they see. It is no different in law, specifically in bankruptcy.
We attorneys get reports almost every week or month reporting if case filings are up or down. People wonder if these patterns are attached to the stock market, the Fed rates, inflation, government stimulus or any number of other possibilities. One factor people like to examine is whether bankruptcy filing patterns can rise or fall determining what time of year it is.
Most know the quote “For every time there is a season.” So, is summer the season of bankruptcy?
In true lawyer fashion, the answer is yes and no. Consumer debt is cyclical. People tend to incur more debt in the holiday season than any other time of the year. Because of this, filings tend to increase in the early part of the year after the seasonal bills come due, but what about the other times of the year? With no seasonal debt associated with any time of the year, what other factors can lead to the ebbs and flows of bankruptcy filings?
The vast majority of consumer bankruptcy cases are people who have families. The stress of daily bills, loans and expenses can add up to the point that they need to get a fresh start, not just for themselves, but for their families.
For these people, the timing of the case filing is important.
When can a person with a family find the time to devote him or herself to the filing of a bankruptcy and the preparation that goes with it? The summertime seems to be the answer.
When kids are out of school, for some, that opens up time to focus on other matters. Instead of spending nights pouring over fractions or book reports, people can take a hard look at their financial situation and decide it may be time to file for bankruptcy protection. Also, the bills that may have been associated with a child’s schooling have been processed and these parents may have a better idea of the debt that was necessary to incur to help their children.
A bankruptcy filing is both a mental and financial decision. People need to have a clear mind to decide if they want to make this important decision.
Summer may be that time.
Some may shy away from a summer filing thinking that the filing will “ruin their summer.” However, for many people there is an immediate sense of relief when the filing occurs. The constant worry and stress from bills is relieved and they can start to live their lives again. What better time to do that than the summer?
If you have questions about your financial situation, or are considering filing for bankruptcy, contact Firebaught & Andrews for a free phone consultation. 734-722-2999
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