The number of Chattanoogans going broke fell last year to the lowest level in 13 years as a growing economy helped trim the number of bankruptcy filings by more than 7 percent from the previous year. But Tennessee, Georgia and Alabama continued to lead the nation in the rate of bankruptcy filings in 2019, according to ABI, the Chattanooga (Tenn.) Times Free Press reported. "We do tend to see more people seeking bankruptcy protection in states like Tennessee, Georgia and Alabama with nonjudicial foreclosure and wage garnishment laws that allow creditors to foreclose on homes or garnish wages without having to go to court, in most instances," said Larry Ahern, a bankruptcy lawyer and adjunct professor of law at Vanderbilt University who previously practiced in Chattanooga. Chattanoogans are far more likely to try to reorganize their finances in bankruptcy court under a chapter 13 filing, rather than simply try to cancel their debts and liquidate their holdings under a chapter 7 filing. Last year, nearly 60 percent of the bankruptcies filed in Chattanooga were chapter 13 filings. Nationwide, about 60 percent were chapter 7 filings by consumers.
