The new administration in Washington DC is promising change when it comes to building up businesses around the country, and no state in the US could use that kind of fair weather near as much as the state of Tennessee can.

Even though bankruptcy rates in the state of Tennessee are at 10 year lows as of the December 2016 report, Tennessee still leads the country when it comes to household and business bankruptcy types – and honestly it isn’t even close.

Combine that with rising interest rates, banks that are interested in offering more loans, and home purchases shooting through the roof in Tennessee and you’re looking at a really dangerous situation that can spiral out of control at almost any point in time.

Bankruptcy rates in Tennessee have been declining for seven years

According to information released by the US government operating out of the federal bankruptcy court in Chattanooga, bankruptcy filings (both personal as well as business filings) have been dropping steadily for about seven years now.

A lot of this is because of rising family incomes in Tennessee, property values that have been jumping higher and higher (sometimes even outpacing the national average), and low gas and utility prices – as well as historically low interest rates – that have helped people right their financial ships once again.

Property foreclosures in Tennessee have also dropped significantly, by some reports as much as 27% in Hamilton County alone. This is one of the real bellwether statistics that shows a trend when it comes to bankruptcy filings, as property foreclosure is one of the most often cited reasons for bankruptcy filings in the first place.

Not all is sunshine and roses, however

Unfortunately, even though the rate of bankruptcies have been declining significantly in Tennessee, there haven’t been as many bankruptcy filings declining in Tennessee as the national average. Everywhere else around the United States there is been a 6% get from 2015 to 2016, but Tennessee is a lagging significantly behind.

Part of the reason behind the lack of bankruptcy filings decreasing in Tennessee has to do with unique state laws that give creditors a much easier time enforcing their rights against people that all of them money – really streamlining the process that creditors need to go after those that have become delinquent on any of the financial responsibilities that they have with folks across the state.

On top of that, people throughout Tennessee have been having a tougher time meeting their financial obligations at the same rate as the national average. For a variety of different reasons (deep rooted reasons that have a lot to do with this part of America and its economic trend over the long term), people in Tennessee just haven’t been able to dig themselves out of the financial crash of the early 2000’s quite as quickly as the rest of the country.

Even still, it’s nice to see that bankruptcy rates have been declining in Tennessee over the past decade and hopefully this rate will continue to accelerate moving forward.