The Bankruptcy Filing Numbers Down, Bad News for a Bankruptcy Attorney
Recently, the bankruptcy rate has come out and shows that fewer Americans are filing for bankruptcy to get rid of their debts. According to the bankruptcy data, the number of Americans filing for bankruptcy has dropped compared to the same period last year, September 30, 2012. The biggest decline was the drop in those who filed for Chapter 7 bankruptcy, down about 15%. The number of bankruptcy petitions under Chapter 13 also fell by 10%. In 2010, the US recorded a record 1.6 million petitions for numerous reasons. In 2011, the decline began to reduce the rate to 1.47 million bankruptcies and has now dropped further to 1,261,140. While this is good news for the economy, it seems bad news for a bankruptcy lawyer.
As a rule, the majority of people go bankrupt beyond all other chapters. Due to changes in the bankruptcy code in 2005 and the real estate bubble in 2007, the number of bankruptcy filings in Chapter 13 has increased. Although we had a slight decline last year, it is still much more than in the past. Many experts are wondering what's going on in the world. Unemployment now stands at 7.7%, which is low compared to the 8-9% over the past four years. The Federal Reserve has responded quickly to the US economic woes since 2007 with QE1, QE2, The Twist, QE3 and now QE4. All this is nothing but a quantitative easing that culminates in printing money to buy our way out of debt. In September, QE3 was announced with a monthly turnover of $ 40 billion to buy mortgage-backed securities. All quantitative easing programs had a timeframe before, but this is too infinity and beyond. When everyone thought that crazy, QE4 came in for $ 45 billion a month last week for the same reason. Again, there was no end-point other than Mr. Bernanke's statement that the Federal Reserve would continue quantitative easing until unemployment fell to 6.5% or less.
In the past, quantitative easing has not worked in any country that has used it to get out of financial trouble. Did it work for the Weimar Republic when it was tried from 1919 to 1923? No, and it will not work here. This monetary policy is no other than to bring the tin to its knees, where taxpayers will eventually pay the bill. The frightening part is the repayment costs that are usually incurred by hyperinflation and higher taxes, and nothing more than to stake a stake in the heart of an already fragile economy. The more money is printed, the less worth the currency. Taking all the facts into account, I think it's a matter of time until new records are set, even though the number of bankruptcy filings has declined. I do not think a bankruptcy lawyer really worries about his career choices. Over the next few years, more and more Americans are likely to lose their homes for foreclosure, and many of them will also have to file for bankruptcy. The young adults who are currently studying law should consider becoming an insolvency attorney, because the way the economy looks, their future looks promising.