Each state has been hit hard by financial difficulties over the past few years. The US is in recession, the labor market has been terrible, and the housing / mortgage crisis has affected millions. Like other states, Arizona has also seen its share of financial difficulties. In fact, Arizona has been hit a little more than many other countries when it comes to financial issues.
In 2007, Arizona residents were fine, in relation to the rest of the country. The country ranked 40th in bankruptcy proceedings. When you consider the fact that their country has already entered into some serious financial difficulties at this point, being 40 out of 50 states was not a bad place.
Flash forward three years until 2010. Arizona ranks 13th in US bankruptcy files. This is a huge leap, and it reflects some of the serious unemployment, mortgage and public finance problems of the Arizona people. Jumping from 40th to 13th is a tangible indicator of how bad financial conditions are for Arizona citizens.
Although things seem to be improving for the national economy, the effects of this rise may take some time to reach Arizona, or any individual state. In the first quarter of 2010, there was no noticeable decrease in the number of bankruptcies filed in Arizona. In total, more than 9,000 bankruptcies were filed during this time. This is still a large amount of files, so it seems that the recovery may be really slow.
18% of Arizona bankruptcy applications for the first quarter of 2010, 18% were for bankruptcy of chapter 13, and 82% were for bankruptcy of chapter 7.
The latest trends on Wall Street show that the economy will start to improve further in the near future, but again, not everyone will immediately feel these improvements. Arizona's financial professionals are still optimistic, although the state's bankruptcy files will begin to fall over the next calendar year.