2010 was a record year for those who filed for bankruptcy, will history repeat itself?

Looking at all the data, 2014 is turning out to be very similar to what happened in 2007. In 2007, the mortgage industry virtually imploded destroying whatever value people had in their homes. Because of this, many Americans lost their homes to foreclosure while leaving because there was no equity left. Another bubble has been created in the last three years in the housing industry, while most Americans were fast asleep thinking that a full recovery was taking place. Well, what do you mean there is no recovery? The Dow and the S&P are at all-time highs. By the way, this is how the fool reads economics. They don’t understand what is driving the Dow and the S&P up. If it weren’t for quantitative easing, we would be in a full-blown depression. This does not mean that it is not going to happen yet, but that it is delayed for a short period of time.

After the 2007 bubble, we saw a record number of Americans file for bankruptcy to eliminate liability for foreclosure and eliminate all the credit card debt they had accumulated in previous years. 2010 was the year that broke all bankruptcy records. These numbers have now decreased, but are still well above the 1 million per year mark. I think we are not far from this album being destroyed. When comparing the data and charts for 2007, they are eerily similar to the charts that were released in 2014. During the first quarter of 2014, mortgage origination decreased 71% from the same period last year. On top of that, $ 5.2 billion in mortgages were completed in the first quarter of 2014, compared to $ 8.3 billion in the prior quarter and $ 18 billion in the first quarter of 2013. It appears that the normalcy bias is working. fully featured in the mainstream media as they continue to fuel the wounded economy.

To further prove that filing for bankruptcy will see new records in the near future, all we have to do is take a look at the consumer credit debt figures. During the fourth quarter of 2013, the US experienced the largest increase in debt since 2007. Total consumer credit has increased 22% in the last three years. What’s scary is that 56% of all Americans now have high-risk credit. Now you should start to see the pattern here that is similar to what happened in 2007. When the government came out and announced the support of the American people to back the rescue of the banks that were too big to fail, I don’t think everyone knew that these people in Washington would not learn from its mistakes. The good news is that they have not eliminated bankruptcy at least so far. But as regulations continue to change in favor of the big banks, I wouldn’t be surprised to see that happen in the future. Bankruptcy is not for everyone, but it will surely get people out of a deep financial bind quickly.

When someone makes the decision to file for bankruptcy, they will always weigh the pros and cons of the process. There are many more positive benefits of filing for bankruptcy than negative ones. The first is the liquidation of bankruptcy. People who file for bankruptcy are buried under a mountain of debt and the only way to get out of this debt quickly is to file Chapter 7. There is no other way to eliminate a large amount of unsecured debt other than filing for bankruptcy. . Any other form of debt elimination is not protected by the US Bankruptcy Court.Because it is a legal process, creditors are very limited in what they can do to the debtor and are usually simply they give up. They know that once the process begins, unless they can prove fraud, the person who files for bankruptcy will get a discharge and no longer owe the debt.

Many creditors have become so aggressive in their collection tactics that they are forcing Americans to consider filing for bankruptcy. Not knowing what to do, they will consult a bankruptcy attorney and receive a quick education on the process. The main benefit of the process is the automatic suspension. When a bankruptcy attorney files the petition, the automatic stay goes into effect and stops all collection activity by the creditor. This returns power to the debtor’s hands and allows the debtor to live again without threats or phone calls from creditors. In fact, the automatic stay will also stop all legal activity, including foreclosures, lawsuits, lawsuits, and wage garnishments. There are many other benefits of filing for bankruptcy that someone should consider. To fully understand the process, one should consult a bankruptcy attorney to see if it will work in their personal situation.