Layoffs and pay cuts shifted more people into bankruptcy last year, and experts attest that the situation will most likely not get any better until the unemployment issue improves. In Wisconsin, bankruptcy filings raised to 30 percent in 2009. This came on top of a 35 percent increase in the preceding year.
According to bankruptcy lawyers, not only is it layoffs and firings that are motivation to file. It's the losses of once-regular over time pay and full time status that have left consumers unable to keep up with monthly payments that in the past were not an issue to pay.
U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press illustrated that more than 1.4 million bankruptcies were filed in 2009, an increase of about 32% from 2008.
And despite the fact that bankruptcy takes away the looming debt and offers consumers a fresh financial start, debtors often remain unemployed and are unable to find employment to get a suitableincome again.
Even more discouraging, unless the economy improves enough for industries to start hiring, there virtually no reason to hold the belief that bankruptcies will go down in 2010. Experts have noted that home foreclosures will continue to pile up in 2010 because people who previously had adequate credit have lost employment and cannot keep up with payments.
Bankruptcy may seem like a good option to get a fresh start, but it negatively affects your credit report for ten years, rendering you unable to get a car, place of residence, or employment. Before declaring bankruptcy, it is a wise decision to speak with your creditors and see if some sort of repayment plan can be worked out.
According to bankruptcy lawyers, not only is it layoffs and firings that are motivation to file. It's the losses of once-regular over time pay and full time status that have left consumers unable to keep up with monthly payments that in the past were not an issue to pay.
U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press illustrated that more than 1.4 million bankruptcies were filed in 2009, an increase of about 32% from 2008.
And despite the fact that bankruptcy takes away the looming debt and offers consumers a fresh financial start, debtors often remain unemployed and are unable to find employment to get a suitableincome again.
Even more discouraging, unless the economy improves enough for industries to start hiring, there virtually no reason to hold the belief that bankruptcies will go down in 2010. Experts have noted that home foreclosures will continue to pile up in 2010 because people who previously had adequate credit have lost employment and cannot keep up with payments.
Bankruptcy may seem like a good option to get a fresh start, but it negatively affects your credit report for ten years, rendering you unable to get a car, place of residence, or employment. Before declaring bankruptcy, it is a wise decision to speak with your creditors and see if some sort of repayment plan can be worked out.
About the Author:
Mallory McGuinness-Hickey works for a debt collection company. Also, she writes articles on bankruptcy, business, finance, and debt collection. Get a totally unique version of this article from our article submission service
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