CHAPTER 7 CAN PROVIDE RELIEF.
I wrote a few weeks ago about rising rents and costs in the supposedly improving economy. Yes, certain indicators show things are improving, but PRICES are not keeping up with costs, and increased debt loads for working families are squeezing people harder than ever before.
Yesterday, the stock market hit a record high. But the poorest fifth of the country received only 3.2% of the nation’s income, while the richest fifth received 51% . Thus, the “boom” is not shared by everyone.
Other statistics released by the United States Census Bureau show that while there has been an increase in full time employment (Excellent!), the median household income—the one exactly in the middle—is down from $56,436 in 2007 to $51,936 today. This is nearly identical to the median income in 1990, and we all know how much prices have risen for everything in the last 25 years! Thus, the squeeze on families to get by in these sometimes exciting but difficult times.
Where does bankruptcy play into this? We have found that reducing debt loads is an immediate solution to some of the financial pressure regular folks are feeling. By processing a Chapter 7, families can lift the burden of medical bills, credit card and payday loan debt, and perhaps get out of a car loan they cannot really afford. In this way people can better keep up with rising costs for housing, and obtain some freedom to work hard to find increased income in the growing economy for them and their families.
