According to recent statistics, there had been a
downturn in the number of bankruptcy cases to be filed in 2012. That's
some good news upfront, but on the contrary a bad one too for the people
who are attached to the filing procedures. On putting an enquiry across
different lawyers about the trend of filing cases in 2013 you will get
different opinions and arguments.
The general theory - for an economy to grow, the
people residing in it must take risks for their businesses. This results
in an indirect increase in the number of bankruptcy cases. The more
debt people accumulate, the more reasons for them to go bankrupt.
This can be the general idea of the common man. But,
you can always have situations where you owe money to some people. So,
whether you borrow money or not, you can always end up getting bankrupt
and then filing a suit. Unpaid bills like medical care or rent,
negligent accidents on your part, or a breach of contract can all lead
to grim situations. The main concept that brings a variation in the
volume of cases is that consumers incur debts and have difficulties
paying them back.
The last quarter of 2012 has seen a resurgence in the
economy trend and also in the spending capacity of consumers. There is a
gradual growth and not an exponential one, though. The holiday season
saw a dull retail sale sector, which did not have good numbers to boast
of. Banking institutions also pulled back the latch on their credit
card offerings during this period. Barring the student loans sector,
there hasn't been an increase in the consumer borrowing as well. Thus,
the economy is recovering, but in small footsteps. In other words,
people have become comfortable spending money, but not when it comes to
borrowing money.
That's not a fair deal on the part of the economy as
well. The American economy, like its Western counterparts, thrives on
borrowed money. The trend goes that the consumers should continue to
borrow for maintaining hard assets- buying stuff- and not just for
consumption purpose. This will ensure that their households as well as
their businesses will thrive in the long run. The geographical landscape
has over 100 million households, so there will be at least 1-2% out of
them who will falter and fail to balance their accounts as a result of
financial ups and downs.
There was a decrease in the numbers due to changes in
the law structure as well. The way credit card debt is accumulated and
collected has changed. An end to "universal default" clauses has
prevented families from upheaving interest rates on debt payments. This
has made life easier. This means fewer number of defaulters, less
collection calls and less lawsuits filed. The government has been
indirectly forcing the banking institutions to adopt a more lenient
lending structure that is easy on the part of the consumer as well. For
more insights on the rules you should contact a Bankruptcy Lawyer in
California.
There is a theory that is dominating the minds of
bankruptcy professionals in 2013. According to this theory, there will
be a rise in the number of filings this year. The reason to support this
is quite an obvious one. 2013 is exactly eight years after the
bankruptcy amendments came into being, in 2005. The people who had been
waiting to beat the odds and file Chapter 7 bankruptcy can now do so.
To get assistance for cases contact San Jose Chapter 7 Bankruptcy
Lawyer.
The above theory can only be held true if the ones
fighting for bankruptcy haven't lost patience and filed for Chapter 13
otherwise. There's a connection between some analysis as well.
Bankruptcy volumes will see a surge with an increase in consumer credit
expansion. So, the more the people borrow, the more the chances of them
getting bankrupt.
Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced san jose chapter 7 bankruptcy lawyer and tax relief lawyers.
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