The number of Chattanoogans going broke or losing their properties to foreclosures declined last year, but Tennessee, Georgia and Alabama still led the nation in the rate of bankruptcies again in 2013.
Bankruptcy filings in Chattanooga fell last year for the fourth consecutive year since reaching a recession high in 2009, according to figures from the U.S. Bankruptcy Court. Last year, 6,515 consumers and businesses sought debt relief in bankruptcy court in Chattanooga, down 1.9 percent from the previous year and 23.3 percent below the level four years ago.
Property foreclosures in Hamilton County, which often lead individuals to seek bankruptcy protection to avoid, also declined another 15.3 percent in Hamilton County last year.
The drop in bankruptcy filings was even bigger nationwide. More than 1.03 American individuals and businesses filed for bankruptcy during 2013, but the total was down 13 percent from the previous year and the lowest total since 2007. Bankruptcy filings have declined steadily since 2010.
Experts say the drop in those seeking a fresh financial start through bankruptcy is due to historically low interest rates that have helped lower expenses for many debt-burdened Americans and greater credit restrictions on borrowing and filing costs on bankruptcies that have made it harder to get into financial trouble or to use the bankruptcy process for relief.