Americans Move From Middle Class to Economic Meltdown…and How Bankruptcy Can Help Skip to main content

You are here

Americans Move From Middle Class to Economic Meltdown…and How Bankruptcy Can Help


Following the worst financial downturn since the Depression of the 1930s, men and women of the middle-class have found themselves profoundly affected by an economic meltdown that’s quickly pushed many into poverty. Widening unemployment paired with shrinking government safety nets means one unexpected and unfortunate incident—a sudden layoff, debilitating injury or illness, a missed mortgage payment—can mean a person's life is instantly transformed from “happy-go-lucky” to the brink of homelessness or worse.

In fact, according to a new article on the state of the shrinking middle class in America, “As foreclosure and unemployment rates have swelled to epidemic proportions in the past two years, the ranks of the American homeless have grown: the number of homeless families rose 4 percent in 2009, and then 9 percent last year, a pair of new reports show. In effect, even more Americans were homeless than those numbers suggest, stranded in the awkward process of staying with friends and relatives, for lack of a home of their own. Instances of families "doubling up" between 2008 and 2010 rose nearly 12 percent.

In fact, as desperate Americans move in with family and friends, according to Census Bureau data, the number of households "doubling up" jumped nearly 12 percent over the past two years. “Now, over 13 percent of all U.S. homes contain more than one family, the highest proportion since at least 1968.”

Despite the fact that downsizing your living situation during uncertain financial times can be a good idea—freeing up savings for potential money misfortunes down the road—you need not be completely stranded by the struggling economy. Lender indifference, mortgage delinquency and underwater living are pecuniary problems tailor-made for a bankruptcy solution.  If you can put a face to the millions of faceless statistics: having trouble making your mortgage, living in a home that will never accrue equity, residing in an area that is currently devalued and facing foreclosure for the foreseeable future, or “doubling up” to avoid homelessness, bankruptcy can help get you back on the right side of the financial tracks. A Chapter 7 bankruptcy will allow you to get away from an underwater home, negate your personal and financial liability, and/or otherwise move forward financially. Or, if you so choose, keep your home while using Chapter 13 to catch up your delinquency and pay your mortgage through a Chapter 13 plan. Because it’s all about using all of the tools at your disposal if you were once stable and are now struggling.

In short, Bankruptcy could have worked for the unemployment and underwater households mentioned above. It could work for you too. If you’ve been affected by the economy and are wondering how to get back to your pre-recessionary best, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.”  The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at Simply click on the yellow “FREE Consultation Now” button.

Debts Hurt! Got debt? Need help? Get started below!

What North Carolina County Do You Reside In?