North Huntingdon, PA -- (SBWIRE) -- 01/11/2011 -- ADMA Solutions, LLC, a Pennsylvania-based debt resolution company, is alerting consumers to 2010 bankruptcy rates, the highest since 2005.

A total of 1.5 million Americans filed for bankruptcy last year, a nine percent increase from the 1.4 million who filed in 2009, according the American Bankruptcy Institute and a report released last week from the National Bankruptcy Research Center. The NBRC report also found that bankruptcy rates tend to vary widely from state-to-state, but are linked to high unemployment and high credit card delinquency rates.

As an example, the report cites Nevada, which has both the highest number of bankruptcy filings and the highest unemployment rate.

Similarly, high bankruptcy rates in southeastern states (like Tennessee and Georgia) can be linked to the high credit card delinquencies in those states. In addition to joblessness and credit card debt, ADMA Solutions Founder and CEO Dave Leuthold pointed to a 2009 study by The American Journal of Medicine that found over 60 percent of bankruptcies were a result of medical expenses.

“As we can see, people turn to bankruptcy after undergoing serious personal and financial hardships,” said Leuthold. “Not because they are deadbeats who don’t want to repay their debts.”

Although some economists point to signs indicating the economy is improving, most agree that the recovery will be slow. For example, the bankruptcy rate rose by 30 percent between 2008 and 2009, but only rose nine percent between 2009 and 2010, according to NBRC.

So bankruptcies are continuing to increase, but at a much slower pace.

“It’s no secret that this economic recovery will take a painfully long time for many Americans,” said Leuthold. “Unfortunately, alternative methods of debt recovery – like debt settlement – are still not as well known.”

Leuthold explained that debt settlement is an often misunderstood debt relief option that could actually help many struggling Americans find an alternative to bankruptcy. He encouraged consumers to actively seek financial education, which can help indebted consumers craft a realistic plan for getting out of debt, and could help people avoid debt in the future.

“As [ADMA President] Amy [Michalo-Rojas] pointed out in November, people have been forced to rely on credit during long periods of unemployment as well as when they’re hit with medical expenses,” said Leuthold.

Currently there are 15.1 million unemployed Americans, according to the Bureau of Labor Statistics, which does not include those who are underemployed or people who have given up looking for work. Long-term unemployment also remains high, meaning that once people become unemployed, many stay unemployed for longer periods of time.

“Even though many of the problems that lead to bankruptcy are unavoidable, consumers can make the best choices about how to move forward when they are armed with enough of the right financial information,” said Leuthold.

About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt resolution company providing credit card debt relief and debt settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit http://www.ADMADebt.com.