In 2005, Congress amended the bankruptcy code because they believed that too many individuals were exploiting the system. There have been numerous debates on this subject alone. However, things are as they are and the law changed. Prior to the enactment of the new code, there was a surge in bankruptcy filings, which was followed by a significant decrease in 2006. This continued until the 2008 economic crisis, when the global real estate market and banks began to collapse. This double-whammy to the U.S. economy precipitated the collapse of the house of cards, with many Americans losing their homes to foreclosure. The foreclosure was followed by bankruptcy as the unemployment rate continued to rise to its current level. In 2008, there was an increase in the number of individuals filing for bankruptcy, a trend that persisted into 2010 when a record number of approximately 1,6 million Americans filed for bankruptcy. This is why so many people are perplexed by the decline in personal bankruptcies in 2011.
One bankruptcy attorney stated online that they were receiving consultation requests from families who were too impoverished to file for bankruptcy. They continued by saying that they are seeing individuals whose unemployment benefits have expired, whose homes have been foreclosed on, and who have nothing left for creditors to take, so what's the point? They are only contemplating bankruptcy to end the harassment.
This narrative is woven into the fabric of American suburbs. These individuals do not comprehend how much simpler it would have been for them if they had filed for bankruptcy before losing all of their assets. Before considering a bankruptcy filing, the only advice that could be given to this type of person is to find employment and meet their basic needs, such as food and shelter, before considering bankruptcy. Many individuals in this situation believe there is no way out, as their creditors are waiting outside like wolves to steal any money they receive.
Considering all of this, newly unemployed individuals should strongly consider declaring bankruptcy. Given the current state of the economy, there is a good likelihood that they will end up in the same situation as these others. When faced with financial difficulties, it would have been preferable for these unfortunate individuals to promptly consult a bankruptcy attorney. It might have been able to alleviate some of their current suffering.""
" - https://www.affordablecebu.com/