In some good news – Bankruptcy filings dropped 6.2% from filings in March of 2009 to March of 2010.
The fact that bankruptcy filings have decreased is typically excellent news for the economies and results from job creation and an improving economy. However, and it is a large however, I do not think that the economy, especially in Phoenix, Tempe, Scottsdale, Chandler, Queens Creek and the other largely over developed areas in the East Valley has yet recovered. It seems that these areas have yet to recover as many businesses and residences still appear to be empty.
In the alternative to the first scenario of an improving economy, and what I believe is actually occurring, is that people have given up hope. They have been beaten down by creditors and by debt. They are walking away from homes, rightfully or wrongfully, and are just ignoring the calls from the bank. The banks have already obtained all the money they can from these people. They have bled them dry and these people have decided it is time to throw in the rag and quit fighting.
Personally, I believe that this scenario is a terribly sad. It prevents people from receiving their fresh start and moving on with their lives. This is something that bankruptcy can easily do. With a bankruptcy, people’s credit can start to recover and can start to help them heal their families and their finances.