As the US Economy Continues to Tumble, Will There Be Mass Numbers Filing for Bankruptcy?

As the US Economy Continues to Tumble, Will There Be Mass Numbers Filing for Bankruptcy? "Numerous economic experts have reaffirmed the catastrophic state of the U.S. economy. At the conclusion of 2012, the GDP fell to a miserable negative value.1%, making this one of the worst quarters ever documented in United States history. It has become abundantly clear that the only thing propelling this economy is a government- and media-promoted debt-fueled bubble of false hope. If it were not for the available credit on their credit cards, the vast majority of Americans would be filing for bankruptcy. The debt-to-income ratio of the middle class has surpassed 150%, whereas it was below 50% only four years ago. After the 2007 financial crisis, banks swiftly eliminated all available credit on credit cards and all open lines of secured credit. This is one reason why the number of Americans filing for bankruptcy reached an all-time high in 2010 and set a new record. If not for the introduction of quantitative easing in 2009, the number of Americans declaring bankruptcy would continue to rise. Quantitative easing is nothing more than digitizing or printing money; whether adding zeros to a bank account or printing physical currency, the effect is identical.Since 2010, quantitative easing has enabled banks to expand their balance sheets by lending money to individuals who were unable to borrow in 2008 and 2009. I believe that this is one of the explanations for the decline in bankruptcy filings among Americans. People in the United States are generally optimistic and hopeful, which leads them to avoid bankruptcy filing at all costs, even if it means delaying the inevitable. The consumer debt monster that is currently being created cannot be repaid in a lifetime, and those who are pursuing this path must wake up immediately. As long as bankruptcy remains an option and the United States Constitution remains intact, people must wake up and smell the coffee. Typically, a bankruptcy counsel will evaluate a client's ability to settle or consolidate debts before filing for bankruptcy. If a person has the ability to repay the debt within five years or less, bankruptcy is typically not an option. If a person has a debt-to-income ratio of 150%, plus interest and domestic living expenses, it becomes evident that it would be nearly impossible for them to repay this debt without winning the lottery. A bankruptcy attorney relies heavily on referrals and their reputation and will, in the majority of cases, steer a debtor in the right direction.The skeptics who believe that an economic recovery is just around the corner should cease believing what they hear and conduct their own research. In 2013, payroll taxes increased, resulting in less disposable income for Main Street America and a worsening of an already fragile economy. According to a brand-new survey, 24% of all Americans have more credit card debt than cash in the bank. Hearing this makes it abundantly clear that many individuals are only one minor financial catastrophe away from declaring bankruptcy. Even though the Dow is nearing a record high, the stock market will eventually receive a reality check when investors realize that this is all smoke and mirrors.
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