Annual American bankruptcy filings are up by over 4,000 since 2016. A growing number of Americans living in our country’s big cities, such as New York, are in debt and are therefore using bankruptcy to mitigate the effect of their overwhelming debt loads. Fortunately, the problem is not so widespread that it could be considered a Great Recession-level uptick, however, analysts believe that there is no doubt the number of annual bankruptcies is steadily rising.
In bigger cities, rather obviously, nearly everything is more expensive, and consumers in big cities are therefore falling behind on their payments, and eventually needing to file for bankruptcy. American household debt is now near $14 trillion. Our country is also facing $1 trillion in credit card debt alone.
Additionally, in the first seven months of this year, nearly 43,000 job cuts have been announced, as companies filing for bankruptcy are also increasing in number. In fact, certain analysists even predict that our total annual bankruptcy number might hit 796,000.
If you are considering filing for bankruptcy, the most important thing you can do is speak with an experienced bankruptcy attorney. A bankruptcy attorney will analyze your specific situation and gauge whether it is time to file. Sometimes, there are other, less drastic options available.
- Some warning signs that you may have to file for bankruptcy are as follows:
- Creditors have obtained judgments against you or your company
- Your bank account has been frozen
- Your personal wages are being garnished
- It is beyond your ability to pay down your credit card bills or medical bills
If you believe you are ready to file for bankruptcy, you should do the following:
- Talk to a bankruptcy attorney and understand the pros and cons of filing a bankruptcy case
- Review your income and debt with your accountant
- Review your credit report
- Assess your total financial situation
- Open all of your mail. Know who is collecting against you and for how much
- Never ignore a lawsuit, foreclosure or collection action
Bankruptcy is a big step, however, it can provide you with the relief you need to work your way back to normalcy. Bankruptcy can protect your house from foreclosure, stop the garnishment of your wages, and more. Please do not hesitate to get in touch with our knowledgeable firm.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.