According to a recent review of federal bankruptcy data conducted by NerdWallet - a financial information organization - six out of the 10 states with the highest personal bankruptcy rates can be found in the South. Topping the list with 553 bankruptcy filings per 100,000 residents is Tennessee.
Not only is the bankruptcy rate in Tennessee more than twice the rate of the nation as a whole, but the state also has two of the top-10 counties in the country: Shelby County with 1,286 filings per 100,000 residents and Bradley County with 745 filings per 100,000 residents.
Below is a complete list of the 10 states with the highest bankruptcy rates, according to the NerdWallet report:
Benefits of bankruptcy
Given the high bankruptcy rate in the Volunteer State, many people may begin to wonder why so many people are filing for bankruptcy protection. Well, the answer is simple: it provides individuals struggling with debt a fresh financial start.
In fact, once you file for a Chapter 7 bankruptcy - the most common form of personal bankruptcy - all debt collections actions against you must stop immediately. This means no more harassing debt collector calls. In addition, you can use bankruptcy to eliminate your unsecured debt, including medical bills and credit card debt; often giving you the new start you so desperately need.
However, it is important to keep in mind that not everyone qualifies for Chapter 7. But don't worry; there are other bankruptcy options available. To learn more, including what bankruptcy alternative may be best for you, contact an experienced bankruptcy attorney today.