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Posts Tagged ‘debt’

Why Bankruptcy?

In Uncategorized on December 14, 2010 at 2:28 pm

Its my experience that loss of income leads more people to file bankruptcy than any other reason. Folks think that they are in good economic shape if they can handle their monthly payments. That plan works most of the time. But if they experience a loss in income, it can make it impossible to keep the bills current.

The income loss can coome from loss of employment, cut backs to overtime, divorce, or downsizing, for example. The results are the same regardless of the cause. Many creditors can be unwilling to negotiate reduced payments to help those who are struggling with payments. So people are forced into bankruptcy due to unexpected circumstances.

Older Americans Bankruptcy Filings On The Rise

In Uncategorized on December 2, 2010 at 10:19 am

The elderly are filing more bankruptcies than ever before. Twice as many as they did 15 years ago. My experience with older clients is that their cost of living keeps increasing. The live on fixed incomes and can’t keep up with expenses. They don’t want to turn to family for help. So they end up using credit cards to make ends meet. Eventually, they can’t keep up with credit payments. When things get out of hand, they seek my help.

The problems the elderly face are not much different than those faced by working people. They confront the same rising expenses as every one else. But its more difficult for them to increase their income. Bankruptcy is a way for them to eliminate the debts they can no longer afford to pay.

New Report Paints Mixed Picture of Consumer Debt

In Uncategorized on August 23, 2010 at 9:29 am

The Federal Reserve Bank issued a report that paints a mixed picture about consumer debt. People are no longer spending like they used to. Overall debt is dropping. That’s the good news. But people are having a difficult time getting rid of the debt they have. In the U.S, the average debt per person is $49,000. Foreclosures and delinquent payments are on the rise. Many people had to file bankruptcy to deal with their debts. Consumer bankruptcies jumped in the last quarter by 34%.

Added to high unemployment and a slowing recovery, the outlook for consumers is not encouraging. Expect expect to see even more bankruptcies for the remainder of the year.