The nation’s income dropped in August 2011, for the first time in nearly two years, according to a government report released last week. The drop was precipitated by a weak labor market and falling consumer confidence.
According to Reuters, “Weak incomes as employment growth ground to a halt and earnings fell hurt spending in August. Income slipped 0.1 percent, the first decline since October 2009, with private wages and salaries dropping $12.2 billion. Economists had expected income to edge up 0.1 percent. Consumer spending growth slowed sharply to a 0.7 percent annual pace in the second quarter after advancing 2.1 percent in the first three months of the year. Last month real spending on goods fell 0.2 percent, while services ticked up 0.1 percent. Disposable income was unchanged for the first time since September, but when adjusted for inflation fell 0.3 percent, the largest drop since October 2009.”
With real disposable income on the way down, savings also fell to an annual rate of $519.3 billion, the smallest since December 2009, from $550.5 billion in July. “The savings rate dropped to 4.5 percent, also the lowest since December 2009.”
At times like these many beleaguered borrowers may need to turn to bankruptcy to make it through 2011. With so many average Americans seeking the safe havens of a bankruptcy petition, you may be wondering, “should I file?” While the answer always depends on the details of your individual financial situation, there are a few traditional factors in your situation that can (and should) point you to the reasonableness of your decision to file or not to file.
(1) Do you need a debt discharge? The most basic advantage of a personal bankruptcy is the discharge of an unmanageable debt-load. Following a bankruptcy discharge, all creditors are barred from seeking your discharged debts. If you have mounting debts—credit card, medical bills, or otherwise—bankruptcy can be a proven debt dissolution solution. Consider it.
(2) Do you need protection from creditors? If you are behind on your bills, you understand better than anyone that creditors will come calling (quite literally) to assert their claims against you. A bankruptcy filing means your creditors are automatically stayed (i.e., “stopped”) from pursuing their claims outside of the bankruptcy process. This process also ends creditor calls, letters and visits that can border on harassment.
(3) Do you need your debt modified?
While Chapter 7 bankruptcy allows you to discharge debt, Chapter 13 bankruptcy can modify the preexisting terms of a contract for debt by either reducing the amount owed or changing the timing of payments. This provides a lifeline to many men and women suffering with mounting debt despite a source of steady income that, with a little assistance from the bankruptcy court, can return them to a better financial position, while also allowing them to hold onto precious assets.
Bankruptcy has become a safety net for millions of people facing their own financial crisis in the wake of the recent recession. So, before making any decisions about your debt dissolution options, make sure to take advantage of the free consultation from a competent bankruptcy lawyer. A qualified bankruptcy attorney is what you’ll want during the bankruptcy process to work in your best interests, regardless of what type of bankruptcy you choose. The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation. Just call toll free to +1-919-646-2654, or make your own appointment online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button TODAY for a better 2011 and beyond.