Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Do fewer bankruptcy filings mean all is well? Not necessarily

Bankruptcy filings are down as we close out 2013. According to, the number of individuals seeking debt relief through the various forms of bankruptcy is down by about 30 percent from what it was at the height of the recent recession.

Does that mean we're in the money again and all is well? Gauging from observations from various experts, it would be a mistake to think so. The reality, as these experts note, is that there is no logical "if-then" scenario when it comes to financial hardship. Just because we have economic recovery doesn't mean individuals facing financial distress are any better off. 

Indeed, as one law professor explains, bankruptcies often spike when times are good because credit is loose. Ease of access means that consumers are more inclined to take on greater debt risk, anticipating that their employment circumstances will carry them through come what may. If the job doesn't pan out, though, the protections afforded through bankruptcy may be wise to pursue. Consulting an attorney can help in making the decision.

Some might argue that they don't have the cash required to afford the attorney. Forget about being too big to fail. These folks believe they're too broke to file.

This is the situation that one husband and wife feels they're in. They've been married for about six years and for most of that time, they say, one or the other of them has been unemployed or underemployed. Both came into the relationship with heavy debt, he in the form of a mortgage and credit card balances, she in the form of student loan debt.

Seeking some relief, they managed unload the mortgage through a short sale. But their hopes of getting further help through bankruptcy have been stymied in part because of her student loans. They're not dischargeable.

Both are now working, but the couple doesn't want to risk spending money filing on their own in case they foul up the paperwork, which is always a concern. But they also don't feel they can afford the price of an attorney.

We would offer to our Texas readers, though, the advice that it's best to meet with an attorney to explore all possible options before concluding there is no possible remedy available.

Source:, "Bankruptcy filings are plummeting," Annie Baxter, Nov. 5, 2013

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions