All the economic news these days is doom & gloom. The stock markets are down, credit ratings are being downgraded, and the federal budget (which keeps this area afloat economically) is going to be cut. What does this mean for our regional economy? Will there be an increase in bankruptcy filings as a result of all this chaos?
The main driver in bankruptcy filings over the past 3 years or so has been the collapse of the housing market. People found themselves facing foreclosure when interest rates rose and home values plummeted. They had to file a bankruptcy to get out from under that giant mortgage. We suspect there are a lot of people who are on the edge, just barely hanging on and hoping for an economic turnaround. Now the promised economic turnaround looks to be further down the road than anyone thought. Home values have not risen. Jobs are not being created. And banks are holding back on millions of foreclosures that will be filed sometime soon. What will people do now?
We suspect there will be an increase in bankruptcy filings in the second half of 2011 as a result of this problem. Those who were barely hanging on and hoping for a miracle are going to have face reality and realize things are not getting better any time soon. Bankruptcy is going to be their only option.
What people do not realize is that bankruptcy is often a good option for them. Filing for bankruptcy is not nearly as bad as many people think. You can still live your life, keep your retirement plans, and move forward to a fresh start financially. It only takes a few years to rebuild your credit, and you will unburden yourself from debts that are crushing your future now.
If you have been holding on and hoping for an economic turnaround, perhaps it is time to at least find out what your options are. We offer a FREE consultation for anyone who is facing foreclosure, or wants advice on how to save their house, or needs to consider a bankruptcy. It won’t cost you anything but time to find out if bankruptcy is a good option for you. Call us today.