Is this a sign of the times?

[NewDawn]

Just wondering what you think about this scenario. My uncle had to file Chapter 7 bankruptcy late 2008. My husband and I had to file Chapter 7 in December of 2008. My best friend needs to file Chapter 7. My parents need to file Chapter 7. My mother and father-in-law need to file Chapter 7. My brother and sister-in-law filed Chapter 7 in October of 2009. I also have another close friend that needs to file Chapter 7 as well. I'm wondering if there are other relatives or friends that are in the same boat as well.

I'm just astonished as to how many people within my little circle that have filed recently or will need to file within a year or less. Astounding. Is the economy THAT BAD????

[frogger]

The economy is bad. IMO, the problem with people stemmed from a lack of savings & too much debt when times were good. The slowdown in the economy just amplified the problem of debt.

The problem with gubmint is a whole 'nuther story...

[Fresh]

Ditto...It is Bad

I agree with Frogger. For many people, the chickens have definitely come home to roost and they were caught, as Frogger said, with little to no savings. What happens when you are spending a good portion of your income on credit card debt and not putting enough away for a rainy day? Or what happens when you decide to start a business and can't get a bank loan and you float everything on your credit cards, which for some people were like the poor man's loan system? And, at the heart of the matter, is what happens when you have no safety net in the form of relatives or friends to help in your time of need because so many are in the same boat?

I think I wrote in another post that bankruptcy is a gift for those of us who can fund it in terms of being able to pay an attorney to assist.

What I've noticed more and more this year versus last year is that people in my own circle are much more upfront about when they feel like they are in trouble or need help financially. This includes the discussion of the option of bankruptcy as a way to start anew. I can't say that was as common for me last year or previously.

This country is in a lot of trouble and anyone who says that everything is aok is kidding themselves.

~Fresh~

[BKOnce]

Just think about it -- Everybody needs to do laundry once in a while-- clean all the dirty *debts* & erase bad *credit scores* and start with new personal clothes... *REFRESH* & *ANEW*.. AMEN! !!

[feelingnutsy]

Hey---Fresh---agreed---and the economy's improving?---really?!

[ryan]

Just my opinion: The underlying economy is much worse than the government-supportive media will acknowledge.

TRUE Unemployment rates are much worse than quoted. Most reputable economists say one should add 6 points to quoted rates at this point in the economic cycle. So, in states like Nevada (Las Vegas-14%) its actually approaching 20% TRUE unemployment.

States like Florida, places like Orlando, its true rate is in the high teens. Many, many states have TRUE unemployment rates in the mid-teens. Illinois, Michigan, Ohio are reeling from this economy.

The few states with decent low unemployment are some of the least populated in the country! (so I guess the key to low unemployment is to have nobody living there!)

In today's New York TImes (a paper friendly to this administration), it said they believe we are definitely slipping back into slower growth again. Translation? More layoffs, more FC's, more bankruptcies, more business closings etc, etc.

I am not so young. I have lived and worked through many recessions. I have NEVER seen anything this deep and long. I have never seen so many businesses close in my area, never seen so many banks fold, ..never seen so many needing public assistance, so many moving back into family members homes, so many openly standing on busy street corners with signs asking for help....

Statistically, the only net growth in employment sectors has been in government.
That should also tell you something.

[feelingnutsy]

Hey---ryan---absolutely---and I call this a Decession.

[NewDawn]

I just wanted to add that 40.2 million people are on food stamps nationwide, as of March of this year. I was just curious if most everybody knows somebody that is in bankruptcy or needs to file soon.

[minan]

NewDawn: I just filed on Friday. I did a 13 however because I have to keep my condo so I have a place to live. I tried the self-employment route, however ran into issues when I wasn't getting paid on time. I lived on credit cards. I also made all the rookie mistakes such as not setting up the business side of the work properly which results in owing lots of back taxes for 3 years.

Now I've had the IRS issue 2 levies on accounts and took money out of the bank. This caused me to be late on all cc's so they have all increased the rates to over 25% to 29.99% percent and continue to add late fees.

I now was getting punched from two sides. I had no other choice at this point.