With today’s economy, people face many economic challenges such as job loss, resulting in foreclosure, repossession, and lawsuits. Many experts equate these tough economic times to the Great Depression of the 1930’s preceding World War II. As a result of these tough economic times, bankruptcy has truly become a sign of the times. More and more people have no alternative but to file bankruptcy. The good news is bankruptcy is a fresh start, it alleviates a lot of the financial stress that people are under, and it is easy to re-establish your credit afterwards. Unemployment rates are also at record highs. According to the U.S. Bureau of Labor Statistics, -The share of families with an unemployed person rose from 12.0 percent in 2009 to 12.4 percent in 2010, the highest level since the data series began in 1994.- With the unemployment rate being so high, employers are able to be very picky about who they hire. Many employers are requiring candidates to have a degree for positions that did not previously require a degree. Even employers such as local stores, McDonalds, and other fast food chains will not hire people who have previously held higher paying jobs but who are without work.
Not only did the unemployment rates hit record highs, but consumer prices have increased by at least .5 percent over the past year, with several areas increasing substantially more such as gasoline prices (19.2%).
According to MSNBC, in early 2010, foreclosure rates surged the first part of 2010 reflecting the largest increase in the past five years. -The number of U.S. homes taken over by banks jumped 35 percent in the first quarter- from the previous year. -In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.-
Additionally, more and more banks and creditors are repossessing vehicles and filing lawsuits as a result of the tough economic times.
Furthermore, many people who own their own small business, especially in a service related area, are struggling as a sign of the times, causing these small business owners to have to close their businesses.
Today, it is very common for bankruptcy to be the only option and the only way out. It is no longer an embarrassing thing to have to file. In fact, most people understand, and are even sympathetic. People who own their own business can even get rid of both their business debts and their personal debts when they file. In addition, bankruptcy alleviates a lot of the financial stress that people are under, not to mention, in most cases, it improves your credit score. Bankruptcy is a fresh start and it is easy to re-establish your credit afterwards.