Let's Face It Unemployment and Bankruptcy Go Hand-In-Hand

Let's Face It Unemployment and Bankruptcy Go Hand-In-Hand "Since 2008, numerous Americans have lost their employment due to the deteriorating economy. Those fortunate enough to maintain employment are not exempt to debt issues. As of late, it appears that many corporations are relocating their manufacturing and headquarters overseas, leaving no one truly secure from job loss. In the past decade, many Americans have accumulated substantial debt. The notion that everyone should be able to live like a rock star, wear designer clothes, and drive expensive vehicles will only be effective for a limited time. To maintain this lifestyle, many of them borrowed against the equity in their property and are now upside down on their mortgage. Some can still scarcely afford it, but many are searching for alternatives such as loan modification.Many individuals are only one minor misfortune away from declaring bankruptcy to get creditors off their backs. Unemployment may be the catastrophe that has befallen many people. The unemployment rate has been over 7% for over five years, and despite government claims that things are improving, there is no evidence to support a recovery. The employment-to-population ratio is an intriguing statistic that generates numerous inquiries. Ten years ago, 63 percent of 16-to-63-year-old Americans were employed, compared to 58 percent today. The national unemployment rate in 2009 was close to 10%, while the employment-to-population ratio was 58%. The most recent data showed an unemployment rate of 6.7% and an employment-to-population ratio of 50%. As the unemployment rate decreases, the employment to population ratio should increase. Speculatively, the unemployment rate may not be an accurate estimate. As the economy continues to deteriorate, an increasing number of American families enroll for food stamps.Those who are unemployed and unable to pay their expenses should not feel ashamed if they are considering filing for bankruptcy. Chapter 7 bankruptcy is the quickest method to stop creditors and eliminate a substantial amount of unsecured debt. Those who are drowning in credit card debt and losing their homes to foreclosure can rest assured that a Chapter 7 bankruptcy will wipe out all of their previous failures and provide them with a second opportunity to start over. The mortgage forgiveness tax expired last year, rendering individuals who lose their homes to foreclosure liable for taxes on the loan deficiency. This would be a double whammy for anyone merely attempting to survive. When you're already down on your luck, the last thing you want is to be pursued by the IRS. Inclusion of the property in the bankruptcy petition will wipe out any deficiency balances left outstanding prior to foreclosure. Chapter 7 bankruptcy, like all other chapters, shares the power of the automatic stay and stops creditors in their tracks. The automatic stay will halt litigation, foreclosures, and wage garnishments against those who are already in severe financial distress. In four to six months, the individual filing for bankruptcy will receive a discharge and be able to leave this entire chapter of their life behind them. After receiving a bankruptcy discharge, a person can begin to restore their credit and embark on the path to becoming debt-free. When there is no other way out of a job loss, declaring bankruptcy may be the only option available.
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