Bankruptcy Filings are About to Rise

Bankruptcy filings are about to rise.  Unemployment causes people to lose the ability to repay debts.  These people may want to repay the credit card and medical debts, but the loss of income may prevent them from making payments.  The American Bankruptcy Institute discussed the increasing unemployment rate, stating

"The unemployment rate has surpassed 10 percent for the first time since 1983 - and is likely to go higher, the Associated Press reported today. Nearly 16 million people can't find jobs, even though the worst recession since the Great Depression has apparently ended. The Labor Department said Friday that the economy shed a net total of 190,000 jobs in October, less than the downwardly revised 219,000 lost in September. August job losses were also revised lower, to 154,000 from 201,000. But the loss of jobs last month exceeded economists' estimates. It's the 22nd straight month the U.S. economy has shed jobs, the longest on records dating back 70 years. Counting those who have settled for part-time jobs or stopped looking for work, the unemployment rate would be 17.5 percent, the highest on records dating from 1994. The jobless rate rose to 10.2 percent from 9.8 percent in September. Economists say it could climb as high as 10.5 percent next year because employers remain reluctant to hire. In addition, the number of Americans who have been out of work for six months or longer rose to a record 5.6 million. They comprise 35.6 percent of the unemployed population, matching a record set last month. Today's report is the first since the government said last week that the economy grew at a 3.5 percent annual rate in the July-September quarter, the strongest signal yet that the economy is rebounding. But that isn't fast enough to spur rapid hiring, raising the specter of a jobless recovery. Many economists also worry that persistently high unemployment could undermine the recovery by restraining consumer spending, which accounts for 70 percent of the economy."

Warmest Regards,

Bob Schaller


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By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm.
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