Even though the process helps individuals re-establish their financial stability, many people in California still view bankruptcy in a negative light. Perhaps because of this viewpoint, recent reports that bankruptcy filings recently hit a 10-year low might seem like good news. While some people might be avoiding Chapter 13 or Chapter 7 bankruptcy because they are handling their debts well, many others might be facing obstacles that prevent them from seeking debt relief.
The Great Recession saw bankruptcy filings spike to significantly high rates. In Sept. 2010, 1.53 million people filed for bankruptcy. During Sept. 2018, less than 770,000 people sought bankruptcy protection. While a reduction in filings might be expected as the recession falls further back in history, this is not the only explanation for the sharp drop.