Amid encouraging job figures that the private sector is surging, it’s important to take a second look at the sad state of the so-called “American Dream.”
In a new article, the New York Times does just that, finding that “Americans enjoy less economic mobility than their peers in Canada and much of Western Europe. The mobility gap has been widely discussed in academic circles, but a sour season of mass unemployment and street protests has moved the discussion toward center stage.”
A major reason for this upward mobility issue is rooted deep into the results of the recent Recession: more people, are more poor than they’ve ever been, meaning younger generations, including our nation’s children, have farther to climb to get out of poverty. A second reason stems from the rising costs of our very efforts to move forward: the price of higher education, including college degrees, are surging faster than our nation’s ability to pay for it, leaving many anxious to keep up with the educational levels of their parents and friends, in higher debt with lesser ability to get out.
According to the Times, “At least five large studies in recent years have found the United States to be less mobile than comparable nations. A project led by Markus Jantti, an economist at a Swedish university, found that 42 percent of American men raised in the bottom fifth of incomes stay there as adults. That shows a level of persistent disadvantage much higher than in Denmark (25 percent) and Britain (30 percent) — a country famous for its class constraints. Meanwhile, just 8 percent of American men at the bottom rose to the top fifth. That compares with 12 percent of the British and 14 percent of the Danes. Despite frequent references to the United States as a classless society, about 62 percent of Americans (male and female) raised in the top fifth of incomes stay in the top two-fifths, according to research by the Economic Mobility Project of the Pew Charitable Trusts. Similarly, 65 percent born in the bottom fifth stay in the bottom two-fifths.”
These various studies reveal two very important points: not only are we less equal, but we’re also less mobile, than previously thought. Both lessons mean that Americans are, more and more looking for ways to break even with previous generations, if not be able to save to “move forward” to a better financial future.
One way, we’re consistently trying to level the playing field is through the financial “leveling” of bankruptcy.
Personal bankruptcy can be a perfect way to “hang in there” in 2012 because individuals who file for bankruptcy can secure a much-needed “discharge” of their debts. In most bankruptcies, unsecured non-priority debt such as credit card or medical debts—debt that cause Americans the most troubles in this lingering economic crisis—is often discharged or reduced to a small percentage of the balance originally due. In fact, just by filing for bankruptcy, your case’s “automatic stay” stops creditor harassment, as well as foreclosures and repossessions of your secured property like homes and cars.
Once an individual has qualified for a Chapter 7 personal bankruptcy, an individual may exit without debt in as little as four months. In turn, a longer-term Chapter 13 bankruptcy often allows individuals to hold onto their precious secured property, even as they dispense with other debts in a tailored payment plan.
Not satisfied with just “staying put” on the mobility scale? Are you ready for the benefits of bankruptcy? If you find yourself facing insurmountable debt, it is essential to begin the bankruptcy process with assistance. An experienced bankruptcy attorney knows the ins and outs of the bankruptcy process and can assist throughout your case, freeing you of debt and putting you back on the road to financial solvency. Contact the Law Offices of John T. Orcutt in North Carolina TODAY for a totally FREE debt consultation. Just call toll free to 1-888-234-4181, or make your appointment online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.