Local bankruptcy filings trending downward

Local residents are having an easier time finding work, but families still run into financial struggles that land them in bankruptcy court, local attorneys said.

Attorneys say fewer people are filing for bankruptcy, but they’ve seen more residents trying to erase their debt even after finding a job.

As of Aug. 31, 633 individuals and businesses in Johnson County had filed for bankruptcy, according to the U.S. Bankruptcy Court for the Southern District of Indiana. If the number continues at the same rate, about 950 bankruptcy cases will be filed by the end of the year.

More than 970 bankruptcy cases were filed last year, which was down from the 1,208 that were filed in 2010, according to the court.

Most people, including an increase in retirees, file because they’ve lost a job and have built up credit card debt, Greenwood attorney Mark Sears said.

The number of bankruptcy filings is down, but families still struggle to make ends meet, some of them filing for bankruptcy even after they find another job, Sears said.

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