June 18th, 2022
Posted By
Matthew Wegner

Bankruptcy filing in Fort Worth have been down for the last couple of years but recent data shows that more bankruptcies are being filed. https://www.uscourts.gov/sites/default/files/data_tables/bf_f2.3_0331.2022.pdf

There are a several different reasons for the increase in bankruptcy filings.

The largest contributing factor in the increase in bankruptcy filings is the increase is debt collection lawsuits and in foreclosures. For the last couple of years, as the U.S. wrestled with COVID and balancing the need to be safe with the need to be productive, many creditors stopped filing lawsuits. Now that numbers of debt collection lawsuits are on the rise and that is driving an increase in bankruptcy filings. We are seeing a lot of lawsuits brought by Bank of America, LVNV Funding and Jefferson Debt Collection. You may have been contacted by Scott and Associates, Moss Law Firm or one of several other common debt collection attorneys.

The second reason that I see that is causing a rise in bankruptcy filings is the increasing interest rates. While interest rates remain low compared to decades past, they are still increasing. As the interest rate increases the cost of borrowing money also increases. The “cheap” money that some people have been borrowing to maintain their lifestyle or to pay off higher interest loans is drying up. According to Rocket Mortgage interest rates on an FHA 30 year fixed mortgage has an APR over 6%. https://www.rocketmortgage.com/mortgage-rates

Finally, while the housing market is still “hot” it is slowing. Eventually all those people who want to move here will get here, I think. Haha. But Elon Musk and other tech industry leaders are pushing for employees to return to work. Remote working has allowed people to relocate to anywhere in the world just about. Not surprisingly many of them have found their way to Fort Worth. You can see the whole story regarding the push to move employees back into the office here.

In May we received three Chapter 7 bankruptcy discharges. It was a little slow but we still eliminated about $300,000 of Debt. That averages to about $100k per person. Can you imagine getting all your debt wiped out and getting a fresh financial start?

If you want to see if you can re-write your financial story schedule a free consultation on my website or call 817-361-4479. You can always email me directly as well. matthew@attorneywegner.com

Thanks!

Matthew