The vast majority of consumers prefer Chapter 7 to the other form of personal bankruptcy, Chapter 13. Over 1,1 million individuals filed for Chapter 7 bankruptcy, an increase of over 200 thousand from 2009. Approximately 400,000 individuals declared Chapter 13 bankruptcy, an increase of only 50,000 since 2009.
Due to joint bankruptcy filings, the Bankruptcy Lawyer Network estimates that approximately 2 million individuals filed for bankruptcy in the 12 months preceding June 2010.
Why are there so many bankruptcies? First and foremost is the fact that many are unemployed, many have enormous credit card debt, too many lack health insurance, and perhaps worst of all, a surprising number of foreclosures are occurring across the country. In some states, such as Florida, 1 in 200 residences are foreclosed upon every month as a result of the mortgage crisis.
Medical coverage has been the leading cause of Chapter 7 bankruptcies, as many unemployed and uninsured individuals are charged exorbitant hospitalization fees. Since nearly 10% of employees are unemployed and many jobs are leaving the country, there is insufficient capital in the economy. Because consumers are not spending, enterprises are failing. Due to the failure of enterprises, there are fewer jobs. Because so many are unemployed, they lack adequate coverage and cannot make their mortgage payments. All of this is a cycle.
Is anything possible? Yes, the government, including republicans, democrats, and independents, is acting. Whether or not this is sufficient is debatable. However, state unemployment payments continue to be utilized, keeping many solvent. Some succeed despite our current economic crisis. Change may be possible if a new emphasis is placed on obtaining medical coverage, investing in new small businesses, and expanding corporations.
Should you file Chapter 7? Even though filing is a common practice, that does not mean it is always used appropriately. However, bankruptcy, like any other instrument, remains an option.""
" - https://www.affordablecebu.com/