Although the number has been declining, in the last five years many Americans have exercised their legal rights by filing for bankruptcy. Almost everyone knows what happened to the economy in 2007. This time, it’s not local to the US but to the whole world. The central banks of Europe and the US have signed on for the Americans and the Eurozone to invest in an unsustainable amount of debt through their derivatives. Now the economy is in the tank and Americans are going bankrupt and have to file for bankruptcy. People shouldn’t be ashamed of getting caught up in this problem and having to file for bankruptcy. This has affected all groups in the US except the very wealthy. This group is actually benefiting from falling real estate prices and from failing businesses. Currently, large banks and hedge funds have bought a large number of ramshackle real estate portfolios.
Now that the market has seen a recent bounce, these guys are seeing the fruits of their labor. As it always has been, the rich get richer and the poor get poorer. Even though housing is starting to move, unemployment numbers are still at record levels and food stamp recipients are at an all-time high. The middle class is taking on more and more debt to maintain the lifestyle they are accused of. All of this only leads to one thing and that is filing for bankruptcy.
In the past, creditors have created a stigma about people who file for bankruptcy. They want everyone to believe that someone who has to file for bankruptcy is a loser and a failure. If it wasn’t for the taxpayer bailout, all of them would have been eliminated in 2007. They have no room to speak ill of anyone. Since Americans didn’t get a bailout from the federal government, filing for bankruptcy is the only way we have of getting out of debt when things go wrong. Those who file for bankruptcy are in good company, as many wealthy Americans and movie stars have had to file for bankruptcy due to bad investments. All you have to do is pick up a newspaper and look at the list of famous athletes and people and how they got to where they are. People with financial problems should put aside their pride and not worry about what others think.
In most cases, filing for bankruptcy is not the only option, but the best option to get out of debt. It is the only legal process that eliminates all unsecured debt and gives the individual a second chance at financial freedom. Something similar to what all American corporations do when they find themselves in a bind.