Bankruptcy and inflation

Bankruptcies rose last year as American dealt with debt and inflation.

The number could be a sign of the times, experts said, especially as personal bankruptcies had been on a decade-plus of sharp decline. Bankruptcy filings peaked in December 2010, when the number hit just below 1.6 million.

The uptick arrived as inflation rises. A bankruptcy lawyer said higher interest rates and minimum payments for credit cards, and the end of the student loan payment deferral, created financial issues for Americans.  “These factors have caused expenses for families to rise significantly and many are resorting to bankruptcy for relief,”

One person said his divorce caused his bankruptcy filing.  You end up borrowing money from high-interest loan companies to support the lifestyle and In the end, you wind up with a huge amount of debt that you cannot pay. This person I was married to simply refused to work but expected to have the finest things in life.  You can call Attorney Robert Simonian for information regarding personal bankruptcy.

The 16 percent increase in bankruptcies shows that his experience is not unique. A combination of factors contributed to the rise in bankruptcies, and he thinks they started with stimulus payments.

“The stimulus packages were not a handout,”  “They were a high-interest loan that we are paying back by high interest rates.”

Inflation and growing student loan and credit card debt play a role, but this reality has been in the making for decades now.  If you think you are alone you are not, you are like millions of Americans today.

The bankruptcy surge is reflective of a lagging economic situation. The increased bankruptcy filings we see now are fallout from earlier periods of high inflation and economic turmoil.  People were struggling to respond as their air supply was being slowly choked off.  Eventually their options ran out.

Credit card debt hit more than $1 trillion in 2023, and more than 60 percent of Americans say they’re living paycheck to paycheck, according to a recent report.

Our current economy is not as great as the government would like us to believe.  Although the stock market is doing great, the fact that so many can’t make ends meet is much more telling.

While inflation and debt are hitting all generations hard, young adults and middle-aged Americans might be feeling it the worst. They’ve had less time and money to put into their retirement and savings and see the current economic environment eating into their budget.  When to file bankruptcy