I have generally stayed away from predictions in this blog, but the current economic situation tells me that many bankruptcies will be filed in the next year to help consumers fight back against skyrocketing prices and skyrocketing consumer debt that people have been forced to take on just to keep up with basic needs.
According to recent reports, the number of credit cards and consumer loans reached record highs in the second quarter of 2022, driven by an increase in subprime borrowers, meaning the poorest among us who can least afford to pay it back.
Leading the group applying for loans are young adults aged 18 to 25, folks just starting out, and many with low-paying jobs. In fact, credit card debt alone rose 13% in the second quarter of 2022, propelling overall household debt of all kinds to reach an astounding $15.84 TRILLION at the beginning of the year!
At some point, this debt will have to be paid back, but that may prove impossible for many families who are continuing to struggle with high food and gas prices and ever-increasing rents.
Where is the money going to come from to pay this increased debt when you are trying to keep a roof over your head, buy groceries, and have enough gas in the tank to get to work?
If people cannot pay everything back, there is relief, as there has almost always been, under the United States Bankruptcy Laws. Filing a chapter 7 bankruptcy will allow folks to eliminate most of their debt and in most cases, keep all of their possessions (house, car, etc.) under the law’s exemption rules.
The analysis of whether a bankruptcy is right for you is usually pretty simple, a matter of simple arithmetic, and takes a few minutes of conversation with a bankruptcy law attorney.
If you’d like to get some advice on how bankruptcy can help you, call me, Peter Milwid, at 303-831-0733. Thank you.
