Are Filing Rules and Debt Traps Fueling Bankruptcy in Georgia?
It is no secret that Georgia ranks in the top three for states with the highest personal bankruptcy filings. Although employment is on the up, for now, the number of people filing in the state still dwarfs most other states. For bankruptcy lawyers and other credit professionals, the important question is why?
If you live in Georgia, credit-friendly laws may seem like a great idea; that is, until you end up overwhelmed by debt that is easy to get into but not so easy to escape. This is especially true for those who are considered middle-class. While the cost of living continues to increase, earning potential lags behind. Individuals and families that live beyond their means are more likely to get into debt as the gap between earnings and affordability of lifestyle grows.
In Georgia, the bankruptcy courts have made pursuing relief an attractive proposition for those who are struggling to pay the bills. You may not even need to pay any money when filing for Chapter 7 bankruptcy in Georgia, depending on where the case is filed. Throughout the state, bankruptcy courts are generally favorable towards debtors. This may have the unintended potential to influence how Georgians look at debt. If debtors know the court is likely to take their side, running up debt may not carry much of a threat.
Inadequate Consumer Safety Net
A debt trap is often the result of inadequate laws, policies or practices that should protect consumers. The unfettered ability to access vast amounts of credit is, more often than not, a recipe for disaster. It is unfair to judge the actions of any individual or family when living above one’s means is the only way to improve social or economic status. When there are robust laws and regulations for borrowing in place, people have little other choice than to borrow responsibly.
If you are struggling in a debt trap and want to seek relief, why not speak to a bankruptcy lawyer from Gingold & Gingold today? We can offer you experienced guidance to help you break out of that cycle once and for all.
Posted on behalf of
1718 Peachtree St NW, #385
Atlanta, GA 30309
Phone: (404) 685-8800