The financial tempest of 2008 left the nation with high unemployment, stagnant job creation and, for many Americans, piles of debt. Three years later, many families are still struggling to regain their footing. While unemployment rates in Tennessee are down, they still remain higher than the national average.
Despite circumstances beyond their control, many households still struggle with idea of filing for bankruptcy. What many do not realize is that attitudes about bankruptcy have changed as our society has been forced to confront realities we never dreamed were possible.
The Changing Face of Bankruptcy
Here is some food for thought: More people filed for bankruptcy in 2010 than in the entire decade of the 1960s. The use of credit cards has grown drastically since their introduction in the 1950s. With the growing population, employment, and cost of living came the nation's increasing incorporation of credit cards into households as a means of revolving credit. For many Americans credit cards became a fact of life.
A tsunami of economic factors has transformed the profile of the bankrupt in America. When the recession hit, families faced lay-offs that led to mounting piles of credit card debt they could no longer afford to pay. The burst of the mortgage bubble left homeowners owing more on their mortgages than what their homes were worth . Those who lost their medical coverage or who were carrying diminished quality coverage were quickly overwhelmed with bills they had no ability to pay.
Bankruptcy - No Longer a Choice
For many families, bankruptcy has become a necessity rather than an option. Individuals are being forced to file because of the prolonged recession, high medical costs and crippling credit card interest rates.
Bankruptcy used to be a declaration of a person's failure to meet their obligations. It was widely believed that people who had to file for bankruptcy were callous spendthrifts with no sense of responsibility. The recession has changed this view as more and more Americans are confronted with the hard choice between using their credit cards to put food on the table or to let their families go hungry.
Not only has bankruptcy become a necessity, it has also become more common. Friends and family members are more likely to know someone who has filed for bankruptcy. This personal knowledge has created a much more human image of bankruptcy and is eliminating the stigma of bankruptcy.
Relief From Financial Burden
Individuals who have decided to file bankruptcy often find themselves bolstered by the feeling of relief. After the bankruptcy has been filed, it is not unusual for families to then recognize the stress and strain their debt burden caused. Filing a bankruptcy often allows families to breathe again.
Americans are starting to see that life goes on after filing for bankruptcy, and it is relatively easy to start rebuilding credit after filing. Bankrupt individuals that have made a good effort to pay bills are often looked favorably upon by credit card companies and mortgage brokers, and sometimes even better than their peers that are underwater on their mortgage and drowning in credit card debt.
If you have thought about filing for bankruptcy but have held back because you were worried about what the neighbors would think, now may be a good time to reconsider. A Nashville bankruptcy attorney can talk with you frankly about what you can expect from bankruptcy and how it can help you gain a fresh start for your financial future.
