Sacramento bankruptcy statistics have been telling the past decade. Bankruptcy filings peaked in 2010. Over 50,000 bankruptcy filings were reported in Sacramento that year. The bankruptcy court in Sacramento is the United States Bankruptcy Court. It serves the entire eastern district of California. The court serves a broad area. It covers everything from Fresno to the Oregon boarder. From the delta to Lake Tahoe. It’s a wide geographical base. This is the link to the court. Here is the district map. This shows all the locations the court covers. It is bag.
Bankruptcy filings in Sacramento are now down. They are less than 2010. Much less. The reason for the decline is due to credit. Or a lack thereof. The great recession caused economic chaos. Credit was too high. Jobs were lost. And debt could not be repaid. It was that simple. It has taken a long time. But credit is now on the rise. This CNBC story is telling. Read it. See for yourself. This may be a recipe for moving Sacramento bankruptcy statistics. Just as it did several years ago.
The economic theory here is not complicated. Rising debt. Stagnating economy. Rising Sacramento bankruptcy statistics. They all go along. Consumers need money to pay debt. The more debt they have, the more money they need. With this increasing debt, increasing income is needed. It’s not happening. So far. The economy may catch up with the debt. But it hasn’t yet.
If the debt and income aspects of the economy don’t reconcile, something has to give. Consumers are typically left holding the bag. But bankruptcy can be a financial fix. Bankruptcy is a way to eliminate debt when you can’t afford to repay it. That is why Sacramento bankruptcy statistics showed such a spike several years ago. And may do so again. Chapter 7 bankruptcy can eliminate all your debt. Chapter 13 bankruptcy can pay off part of your debt. And it eliminates what you can’t afford to repay. Whatever your need, bankruptcy can cure what the economy is not.