Number of Americans Filing for Bankruptcy Is Down In the Worst Economy in Years

Number of Americans Filing for Bankruptcy Is Down In the Worst Economy in Years "The United States has experienced the worst recession since the Great Depression in the past four years. Almost immediately after the real estate bubble burst, the financial markets nearly collapsed and a large number of Americans lost their employment. This snowball began rolling rapidly down the hill, consuming everything in site. In 2005, Congress amended the bankruptcy code out of concern that an excessive number of Americans were exploiting the system. With the new BAPCPA of 2005 came the addition of a means test for Chapter 7 bankruptcy applicants. This requirement was added because Congress believed that many Chapter 7 filers were capable of repaying a portion of their debt. They believed that those with excessive income should instead pursue Chapter 13 bankruptcy. Prior to the implementation of the law, the number of Chapter 7 bankruptcies rose significantly to over 550,000 and then drastically declined in 2006. Congress congratulated itself and declared that all problems had been resolved. At least, that's what they believed.In 2008, the number of Americans filing for bankruptcy rapidly surpassed 1 million, shattering all previous records. This number continued to expand to 1.6 million by the end of 2010. There was a slight decline in the number of bankruptcy filings from 2011 to 2012, which is presently close to 1.3 million. Government agencies are once again congratulating themselves, believing the economy is on the mend. Nationally, the current economic situation is the worst it has been in more than a year. And that's not saying much if you've been paying attention to the economy since 2007.While there are fewer bankruptcies, the number of Americans living in destitution and receiving food stamps is at an all-time high. The U.S. Census Bureau has revealed that the number of Americans living in poverty has reached an all-time high of 49.7 million, while the number of Americans receiving food stamps has reached an all-time high of 47.1 million. Many Americans are abandoning the middle class and falling into poverty every day. As the media continues to assure us that things are improving, the number of people filing for unemployment benefits increased to 439 thousand during the week ending November 10, 2012. Since April 2011, this is the greatest number we have seen. In addition to all of this good news, the Dow and S&P 500 have both declined by more than 5% since the election, and the government is speeding towards the fiscal precipice while incurring a $120 billion monthly deficit. As the pointing of fingers persists, so do the expenditures. It doesn't take a genius to figure out where the country is heading if it continues to spend money at this alarming rate.Also burying their heads in the earth and spending themselves into oblivion are the majority of Americans. The average individual's credit card debt is now over $16,000. In the past four years, the average annual income has decreased from $42,000 to approximately $36,000. People are spending more than they are earning. When they should be contacting a bankruptcy attorney and filing for bankruptcy, they are instead calling their creditors to request an increase in their credit limits. When you think about it in depth, it is absurd. It is time for Americans to grit their teeth and endure discomfort to get things back on track. If it requires forfeiting benefits, so be it. The country's current trajectory is untenable. At some point, the economy will implode utterly. It did not work for the Weimar Republic to print and expend money, and it will not work for the United States.
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