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During difficult economic times, the number of bankruptcy filings rises.

During difficult economic times, the number of bankruptcy filings rises.
"""It comes as no surprise that personal bankruptcies are increasing. The economic recession has made life difficult for many Americans. Those who previously would have never considered filing for bankruptcy are now considering doing so.

According to statistics, bankruptcy filings have increased across the board. Despite a minor decline during the early summer of 2010, the number of states filing for bankruptcy has increased. From 2009 to 2010, bankruptcy filings and pending cases increased by an average of 10 to 25 percent. Arizona, California, Nevada, and Florida are among the hardest-hit states, with Nevada leading the pack with a 55 percent increase since 2009.

These states were also among the hardest affected by the subprime mortgage or real estate crisis. In these jurisdictions, housing costs were among the highest in the country. When the """"housing bubble"""" burst, many householders were unable to pay their mortgages or refinance them. At that time, many of these householders sought out bankruptcy attorneys.

Elderly Among Most Affected

Currently, older individuals are working longer and accumulating more debt. In addition to relying on credit cards to pay for groceries, gasoline, and even medications, an increasing number of older individuals have adopted this practice. As a result of the bursting of the housing bubble, the rising cost of products, and shrinking retirement accounts, many senior citizens are in a difficult financial position.

As a result, a large number of older individuals have been forced to refinance or foreclose on their homes, thereby losing any equity accrued in prior years. Many of these adults have fixed incomes and are unable to find suitable part-time employment or re-enter the workforce.

Those who have relied on credit cards for their livelihood will likely reach a point where their payments resemble a snowball rolling downward.

At that point, the options will be to attempt to survive amidst suffocating debt or to locate a lawyer and file for bankruptcy.

Efforts to Avoid Insolvency

We would like to believe we have the foresight and prudence to avoid calamitous debt. However, this is not always true. Sometimes, circumstances beyond our control occur, such as the real estate crisis or an unanticipated illness.

When we reach ""survival mode,"" we frequently do whatever we can to remain afloat. Unfortunately, unless a solution is discovered, we are only delaying the inevitable. Insolvency could be in our future.

There are factors that can be considered in an effort to enhance one's financial outlook:

Focus your attention on your budget. Examine your income and expenditures closely and make cuts wherever feasible.

• Communicate with your creditors to determine if you can establish a payment plan or, at the very least, reduce your interest rate.

• It may be challenging, but strive to use cash instead of credit cards, even if it means cutting back on """"extras"""" like dining out.

• If possible, work a few extra hours or find a second employment, at least temporarily. Perhaps have your spouse do the same, using the additional funds to reduce your debt. Whenever feasible, put a portion of this extra cash into savings.

Having our financial backs against the wall frequently compels us to become organized and meticulous in monitoring our incoming and outgoing currency. Insolvency does not spell the end of the universe. It has aided many obtain a new financial beginning. However, it carries repercussions from which it may take some time to recuperate, so it should be avoided whenever possible.""

" - https://www.affordablecebu.com/
 

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"During difficult economic times, the number of bankruptcy filings rises." was written by Mary under the Finance / Wealth category. It has been read 135 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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