Does Bankruptcy Filing Affect the Economy
Does bankruptcy affect the economy? Sounds wrong, but studies show that the easier it is to file for bankruptcy, the more people will take risks to start new businesses. The actual cause of the increase in bankruptcy filing used by the credit industry lobby to get the laws changed, was, the increase in credit extended by those same companies. Filings per million dollars of consumer credit very little, about 4%, in the 20 years or so before the law was changed. The more they lend, the more people go broke. The savings promised to the rest of us was supposed to be lower credit card interest rates. Which are still yet to materialize? Of course, the bankruptcies that would be best for the economy would be AIG and all the other bailout recipients. But no, the politicians dole out our tax money to the big boys, and leave the bankruptcy law alone, at least so far.
You’ve gotten some information about Bankruptcy and you think that you need to file. But are you really ready? Do you have the documentation that your attorney or bankruptcy service will need? Keep in mind that the laws vary across the country from state to state. One requirement under the bankruptcy code is it you complete a statement of current monthly income. If you are employed, you will need all of your pay stubs or other evidence of pay that you receive for the six months prior to the month that you file bankruptcy.