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Job Losses, Unpaid Work and Furloughs Sending More Americans to Bankruptcy

Posted By admin || 25-Jun-2009

We've got millions of Americans out of work and the bankruptcy filings just continue to rise. Even the most optimistic of Americans are finding themselves up against a financial wall, with only bankruptcy preventing total financial disaster. There's an interesting article at the NJ.com featuring the stories of several debtors who have filed bankruptcy, giving a truly grim but honest look at the real faces behind the dismal unemployment numbers.

The article said:

"Experts say the surge in filings is being fueled by the economy as companies lay off employees, freeze wages and impose economic sanctions like unpaid furloughs. Employees, many already struggling to make ends meet, fall deeper into financial straits and are unable to pay their bills.

"They can't afford their mortgage, they can't afford to sell their house because it's worth less than they owe on it," he said. "I don't remember things ever being this bad. It's sort of like a double whammy. Not only are you losing your job, but you're losing the equity in your house." People who were once able to juggle their finances on a limited budget are finding they can't do it anymore, he said. "There comes a point when you're robbing Peter to pay Paul and the door shuts," he said. "There's no more Peter or Paul."

This is the culmination of the credit crisis, foreclosure crisis and the surge of corporate bankruptcies and job losses that have hit this nation. All of these factors, totally out of our control, are pushing more Americans into bankruptcy. Many debtors are jeopardizing everything to avoid bankruptcy; but there is only so much debt anyone can pay without an income.

There is no shame in filing bankruptcy. It is situations such as the one we are all facing now where bankruptcy can help those in dire straits. For those of you who are hoping that you can work out an arrangement with creditors outside of bankruptcy, be very cautious. Because of the challenges creditors are facing debt collection is becoming extremely aggressive with creditors moving faster to file lawsuits against debtors and for smaller amounts of money.

Once a debtor wins a lawsuit against you (and they will most likely win) they can move quickly to garnish your wages and seize you bank accounts. Don't let that happen to you. If you are overwhelmed with debt and need help getting on your feet, contact a Dallas- Fort Worth bankruptcy attorney today.

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