In 2012, 1,3 million Americans filed for bankruptcy in order to eliminate their debt. This figure is lower than the record set in 2010 when 1,6 million people were required to file. Many in the media believe that this is a sign that the economy is improving, but there are more skeptics than believers in this theory. Simply examine the other numbers, such as the GDP number that was just released last month. Considering that 5 million properties in the United States are slated for foreclosure, it does not appear that things are improving.
I believe banks are once again lending, and as a result, individuals are incurring more debt rather than filing for bankruptcy. The debt-to-income ratio of middle-class Americans has tripled over the past decade. In essence, this indicates that the average American owes more in consumer debt than they earn annually. At some point, banks will no longer be able to lend, leaving these individuals with no choice but to file for bankruptcy.
The decision to declare bankruptcy is an emotional one. To advance, the majority of individuals must display humility and let go of their vanity. In the past, bankruptcy was associated with humiliation and failure. Now that so many Americans are required to file, this stigma is a thing of the past. Many individuals require a year or so to accept that filing for bankruptcy is their only option. Some of these individuals continue to juggle their expenses by robbing Peter to pay Paul in order to maintain their accounts. At some point, it becomes inevitable that there is no means to ever repay this debt besides winning the lottery.
When the decision is made to contact a bankruptcy attorney and file, the most common regret is that it wasn't made sooner. Some will feel regret for the money they spent on past payments for debts that will be discharged in bankruptcy. It takes time to make a decision for most people, but a person who wants to be honest with themselves should not let their pride get in the way.""
" - https://www.affordablecebu.com/
