The New Economy & Bankruptcy

Published Wednesday, June 3, 2009 @ 9:46 am

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There is no questioning how critical a role the state of our economy has played in the debt problems Americans are experiencing today. From lost jobs to increased consumer costs, the economy has caused a lot of pain for all Americans.

It’s clear that our economy will continue to be a source of worry for much of America. If you’re thinking about filing for bankruptcy, you may be worried that the economy has gotten so bad, bankruptcy relief may not be enough to help. In these troubled times, it’s best to reflect on your individual financial situation and to look a little into the future, as clearly as possible, to hopefully get some insight into where we’re all headed.

Despite recent signs of improvement, unemployment numbers continue to mount, with little evidence that employers are ready to start re-hiring. The odds are very good that you, or someone close to you, is out of work. If have you ever thought about additional training, more education or a new career, now might very well be the time to pursue those goals. Your aim should be to make yourself as marketable as possible in a very competitive environment.

It is hoped that banks have learned a lesson from years of irresponsible lending. With tighter lending guidelines, expect much tighter restrictions on loans in the next several years. This leaner lending environment may keep growth at a minimum in the near term, but hopefully will prevent any future financial catastrophes. Over time, like building back from bankruptcy, our economy will strengthen and lending will return to more balanced practices.

Wages will likely continue to decline, all while the dollar decreases in value. The government has flooded the market with trillions of dollars in the last half-year, which will set us up for very measurable inflation, meaning your dollar will not be worth nearly what it once was. The decline in the value of the dollar will continue

The secondary financial market will most likely have to correct itself as well. This may mean that we’ll see a big drop in the number of esoteric, behind-the-scenes investment practices that led to so many of our problems today. While it’s tough to point out the one broken bolt in a machine the size of our national economy, it’s safe to say that Wall Street’s malfunction was responsible for a lot of down time. More than likely, the repairs needed will come from Washington as well. That may or may not be a good thing. Only time will tell.

Our nation is certainly in a rough spot. The events of the last several months are a nice, collective example of how financial issues quickly ramp up into emotional and social dilemmas, adding even more sinkholes to the recession morass.

It’s very important in these times to what you can to take care of your family’s economic position. If you’re struggling, consider bankruptcy as a strategic option to stay above water in tough economic times. When the economy begins to rebound, you and your family will be best situated to rebound with it. With offices in Raleigh, Durham, Wilson and Fayetteville, the Law Offices of John T. Orcutt can help you get rid of debt. Call today to set up your free initial consultation: 1-800-899-1414.

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