In This Volatile Economy Filing Bankruptcy Is King

After watching the close of the stock market today I have come to the conclusion that many Americans will be filing bankruptcy in the near future. It seems that by the time most people retire their pensions will be nonexistent. Cities these days are having trouble meeting their payroll because of the huge pension obligations. Most government municipalities, whether it's local, state or federal are on some kind of defined benefit retirement program. This means when they retire they will receive a percentage of their highest salary. When the market goes down the municipality is responsible to make up the difference to fund the pension. This is a win-win for the employees and a lose-lose for the taxpayers. Many people's 401(k)s getting wiped out, individuals will have to consider going back to work to make ends meet. Since the downgrade of the US government last week many economists believe that the US economy is bankrupt because of its poor spending habits. This is not good news for Americans, as many rely on Social Security, Medicare and many other entitlement programs. All it would take is to get a reduction in these government payments and these individuals will have no other option but to file for bankruptcy.

In this volatile economy, filing bankruptcy might be the best way out of debt. You see corporations and businesses filing bankruptcy to re-organize every day with little or no repercussions. Many of them believe a bankruptcy filing being leaner and meaner than before. If filing bankruptcy is good enough for large corporations, it should be good enough for you.

When deciding to file for bankruptcy as an individual should first speak with a bankruptcy attorney in their area to go over their personal situation. The bankruptcy attorney should be able to tell if the debtor is qualified to file Chapter 7 bankruptcy or if for their circumstances it would be best to be put in a Chapter 13 bankruptcy. A Chapter 7 bankruptcy is usually best for an individual who carries a large amount of unsecured debts like credit cards, while a Chapter 13 shows its benefits by protecting property. Both types of bankruptcy filing have many benefits when used with a help of a bankruptcy attorney. If you're in debt and don't know what to do, don't fret, contact a bankruptcy attorney and see what filing for bankruptcy has offer you.