2010 Was a Record Year for Those Filing Bankruptcy, Will History Repeat Itself?

2010 Was a Record Year for Those Filing Bankruptcy, Will History Repeat Itself? "Looking at all the data, 2014 is shaping up to be very similar to 2007 in many respects. In 2007, the mortgage industry nearly imploded, wiping out the equity that homeowners had in their residences. Due to this, a large number of Americans lost their residences to foreclosure because they had no equity left. In the housing industry, a new bubble has been created over the past three years while the majority of Americans slept soundly believing a full recovery was in effect. What do you mean there is no chance of recovery? The Dow and S&P have reached all-time highs. In passing, this is how an imbecile interprets the economy. They do not comprehend why the Dow and S&P are rising. Without quantitative easing, we would be experiencing a full-blown depression. This does not mean that it will never occur; it is simply delayed for a brief period of time.As a result of the 2007 bubble, a record number of Americans filed for bankruptcy to eliminate the risk of foreclosure and to eradicate the credit card debt they had accrued in previous years. 2010 was a record-breaking year for bankruptcies. These figures have decreased, but they are still well above 1 million per year. I believe that the destruction of this record is imminent. When comparing the data and graphics from 2007 to those released in 2014, there are uncanny similarities. Comparing the first quarter of 2014 to the same period in 2013, mortgage originations decreased by 71%. In addition, the first quarter of 2014 saw the completion of $5.2 billion in mortgages, compared to $8.3 billion in the previous quarter and $18 billion in the first quarter of 2013. As the mainstream media continue to stimulate the ailing economy, it appears that the normalcy bias is in full effect.To further demonstrate that bankruptcy filings will set new records in the near future, we need only examine consumer credit debt statistics. In the fourth quarter of 2013, the United States experienced the greatest debt increase since 2007. The total amount of consumer credit has increased by 22% over the past three years. Alarmingly, 56% of all Americans currently have subprime credit. You should now be beginning to notice a pattern similar to what occurred in 2007 here. When the government came out and asked for the support of the American people to bail out the too-big-to-fail banks, I don't believe everyone realized that these Washington officials would not learn from their blunders. The positive news is that they have not yet eliminated bankruptcy. However, as regulations continue to shift in favor of large institutions, I would not be surprised if this were to occur in the future. Bankruptcy is not for everyone, but it will get people out of a dire financial situation swiftly.When someone decides to file for bankruptcy, they will always consider the process' advantages and disadvantages. There are many more advantages to declaring bankruptcy than disadvantages. The first is the discharge from bankruptcy. People who file for bankruptcy are buried beneath a mountain of debt, and the only way to rapidly escape this debt is to file Chapter 7. There is no alternative to filing for bankruptcy to eliminate a significant amount of unsecured debt. Every other method of debt elimination is not protected by the United States Bankruptcy Court. Because it is a legal procedure, creditors are severely constrained in their ability to take action against the debtor, and they typically give up. They are aware that, unless they can prove deceit, the individual filing bankruptcy will receive a discharge and no longer owe the debt once the process has begun.Many creditors' collection strategies have become so aggressive that they force Americans to contemplate declaring bankruptcy. Unsure of what to do, they will counsel a bankruptcy attorney and receive a brief overview of the procedure. The automatic remain is the most notable advantage of the process. When a bankruptcy attorney submits the petition, the automatic stay goes into effect, halting all creditor collection efforts. This returns power to the debtor and enables the debtor to once again live without intimidation and phone calls from creditors. In fact, the automatic stay will halt all legal proceedings, such as foreclosures, litigation, judgments, and wage garnishments. There are numerous additional advantages of filing for bankruptcy that should be considered. A bankruptcy attorney should be consulted in order to gain a thorough understanding of the procedure and to determine whether or not it is applicable to the individual's situation.
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