WHY FILE BANKRUPTCY????

Millions have filed bankruptcy and millions more are considering bankruptcy, even as we speak. Here are some of the statistics:

Bankruptcy Filings:
Year	Total Bankruptcies	Personal Bankruptcies	Business Bankruptcies
Jan 1 - June 30 2008	522,205	503,749	18,456
2007	850,912	822,590	28,322
2006	617,660	597,965	19,695
2005	2,078,415	2,039,214	39,201

There are short-term reasons and then there are the traditional or “long term” reasons why so many people have been filing bankruptcy. See if these apply to you.

1. TRADITIONAL REASONS WHY PEOPLE FILE BANKRUPTCY: The Straw that Breaks the Camel’s Back.

   Most people do live within their means. Unfortunately, it only takes one major, unexpected problem to destroy carefully-made plans.

   1. Repossession or foreclosure.
   2. Garnishment.
   3. Divorce. (Or, being married in the first place).
   4. Ex-spouse files bankruptcy.
   5. Gambling.
   6. Uninsured Medical Bills and Hospitalization.
   7. Unemployment, or “underemployment.”
   8. Loss of driver’s license due to uninsured motorist accident.

    

2. MAJOR SHORT-TERM PROBLEMS AHEAD:

   I do not think our economy is doing all that well. Here’s why:

   1. Gasoline prices are climbing out of sight, once again!
   2. Home heating costs have risen sharply!
   3. Insurance rates are going up as a result of Hurricane Katrina!
   4. Jobs are still being exported overseas!
   5. Interest rates are jumping!
   6. Many credit card companies are DOUBLING their MINIMUM MONTHLY PAYMENTS!

In short, the "perfect storm" is brewing and you and I are caught in the middle of it! But people also lose jobs, suffer unexpected, uninsured medical bills and get divorced. Can you honestly blame anyone for things outside their control?