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Bankruptcy Law Blog

Monday, January 13, 2020

Bankruptcy More Common in Alabama Than Any Other State

This time of year, everyone is paying attention to statistics. We watch the price of various crops as harvest approaches. We keep a close eye on the weather. And we all know what Alabama’s record is on the football field. (Roll Tide!)

As a law firm that works almost exclusively on bankruptcy cases, the Padgett & Robertson team also keeps a close eye on some other statistics — like the number of bankruptcies filed in our state and things like store closings, which might lead to increased filings in the future. What we are seeing right now is not good.

Bankruptcy in Alabama

Data from the American Bankruptcy Institute reveals that people living in Alabama are more likely to file for bankruptcy than people living in any other state. Through the month of August, Alabama had the highest per capita bankruptcy rate in the country.

We averaged 5.61 bankruptcy filings for every 1,000 people. We were followed by Tennessee (5.39), Georgia (4.31), Mississippi (4.25) and Nevada (3.79). Compare this to the national average of 2.51 filings per 1,000 people, and you can see we are in a tight spot.

Unfortunately, things are likely going to get worse. Corporate and business bankruptcies are causing companies to cut more jobs than they have since the Great Recession. “In the first seven months of the year, U.S.-based companies announced 42,937 job cuts due to bankruptcy, up 40% on the same period last year and nearly 20% higher than all bankruptcy-related job losses last year…”

People who lose their jobs because their employer declared bankruptcy are obviously more likely to face financial trouble that leads to bankruptcy themselves. It is a domino effect of the worst sort.

You Are Not Alone

The only silver lining to this news we can offer is a promise, backed up by these terrible statistics, that you are not alone. If you are considering filing for bankruptcy, you are in good company.

Maybe you lost your job. Maybe you suffered an illness that drained your bank account. Maybe the college degree you hoped would be your salvation is not worth the piece of paper it’s printed on. Maybe you were young and reckless with credit cards. Whatever your situation, you are not alone. Hundreds if not thousands of Alabamians are in the same boat. More than any other state, our friends and neighbors are sinking under the same stress, fear, and even shame.

At Padgett & Robertson, it is our job to throw you a life preserver. While the situation you are going through may be strange to you, helping people in financial trouble is what we do every day. We can help you determine if bankruptcy will bail you out or make things worse. When bankruptcy is the best option, we help you determine which chapter is the best chapter to file under to meet your goals, then lead you through the entire filing process.

If you are ready to ask for help, we are ready to answer the call.


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Padgett and Robertson assist clients with Bankruptcy, Personal Bankruptcy, Consumer Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and The New Bankruptcy Law in Mobile, Alabama and throughout southern Alabama. Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”



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| Phone: 251-342-0264

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Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”