Why fewer bankruptcy filings might mean continued debt problems
There are high points in an economy and low points. That is just a lesson in history that applies to the present and future. Families have had to ride the wave of ups and downs for generations, and families are riding that wave today, for better or worse.
Sadly, many families in Georgia and throughout the U.S. have faced lots of the worse in the past decade. From a tough job market to unethical, dangerous home mortgage loan lending, people have found themselves in financial holes that they simply can’t get out of.
But is a wave for the better now washing over the nation? Bankruptcy trends could support the belief that fewer individuals and families are stuck in crippling debt.
Marketplace.org reports that bankruptcy filings have decreased by about one-third of the rate compared to in the recession. Different people read into that statistic in different ways:
- On one side of the bankruptcy trend report are those who might believe that fewer filings are the result of a more stable economy and financially secure people.
- Then there are what some might see as the pessimists, including a law professor, who suggest that the downward bankruptcy trend means that consumers are carrying debts that are still crippling but aren’t legally dischargeable based on current bankruptcy laws. Student loan debt is an example of a popular kind of debt that certainly holds people back but is not dischargeable.
No one should ever assume that their financial trouble is beyond relief. A bankruptcy attorney can discuss individual situations with those struggling to make ends meet. It can be a stressful, even emotional conversation, but it is also an invaluable one for those who are seeking a fresh start.
Source: Marketplace.org, “Bankruptcy filings are plummeting,” Annie Baxter, Nov. 5, 2013