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More consumers are filing for bankruptcy due to increasing credit card debt and financial struggles

Bankruptcy Filings in Indiana on the Rise: Financial Struggles Continue

Bankruptcy filings in Indiana are on the rise as consumers grapple with high credit card debt, student loan repayments, and overall financial insecurity. According to experts in the field, the trend is likely to continue throughout the year.

Matthew Cree, a Greenwood-based solo practitioner specializing in personal bankruptcy, debt defense, and student loan resolution, has noticed an increase in cases since last year. Despite the easing of COVID-related restrictions, many clients are still struggling with financial issues stemming from the pandemic, such as job losses and depleted savings.

In the U.S. Bankruptcy Court for the Southern District of Indiana, April saw a 19.9% increase in all bankruptcy cases compared to the previous year. This follows a series of monthly year-over-year filing percentage increases, indicating a growing trend.

Corey Benjoya, an attorney with the Bankruptcy Law Office of Mark S. Zuckerberg, has also observed a surge in calls since the beginning of the year. The office’s workload has increased by about 40% compared to the same period last year, with a mix of distressed individual consumers and companies seeking assistance.

Trucking companies, in particular, have been hit hard, with many small businesses facing financial challenges due to a lack of freight to ship. For individual consumers, credit card debt has been a significant issue, exacerbated by aggressive collection efforts post-pandemic.

While some law firms are experiencing a stagnant or minimal increase in bankruptcy filings, others like Benjoya’s are expecting numbers to surpass previous years. High levels of student loan debt, vehicle repossessions, and rising everyday costs are contributing factors to the growing demand for bankruptcy services.

Despite the surge in cases, firms like Benjoya’s have been able to manage the workload efficiently, with no delays in the court system processing bankruptcy cases. The outlook for the remainder of 2024 remains uncertain, with experts predicting varying levels of bankruptcy filings based on economic factors and individual financial challenges.


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