Wednesday, March 28, 2018

Economic recession leads to bankruptcy boom

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According to a report issued by the National Bankruptcy Research Center, the personal bankruptcy application in January 2009 increased by 34% compared with January 2008. Compared with the previous month, applications in December 2008 increased by 4.5%.

These increases are undoubtedly the result of the current economic crisis. The United States National Bureau of Economic Research (NBER) reported that the United States' economy "entered a recession in December 2007.

Traditionally, the economic recession was defined as a two quarterly statement of gross domestic product, but the National Bureau of Economic Research's economy The cyclical dating committee has taken a more comprehensive approach to eradicate the recession." The recession is a significant decline in economic activity across the entire economy, reflected for more than a few months and is usually seen in production, employment, real income, and other indicators.

-NBER, the determination of the peak of economic activity in December 2007, December 11, 2008

Justin Berton, a staff member of the San Francisco Chronicle, wrote an article on January 13 entitled "Economic Dilemma Leads to Bankruptcy" Prosperity article, 2009 edition. He reported that the number of members of NACBA (National Association of Consumer Bankruptcy Lawyers) has increased by one-third in 2008 to reach 3,200 licensed lawyers.

The number of bankruptcy filings soared in 2005 To more than 2 million non-commercial applications, it is mainly due to the expectations of the "Bankruptcy Reform Act of 2005" that came into effect on October 17, 2005, making it more difficult to file for bankruptcy.

Those who are in poor financial condition are very Strong motives apply for bankruptcy before the new law goes into effect, rather than trying to get out of debt because they no longer have bankruptcy insurance policies after October

2005 Bankruptcy Reform Act increases the amount of work required to apply and lower qualifications Now demanding credit counseling and debtor education courses, the number of applications for 2004 actually decreased from 1.625 million in 2003 to 1.56 million.

In 2006, it is possible to pre The bankruptcy filing collapsed. Two kinds of influence led to downward pressure on the application. First, the application requirements have been eroded because many people waiting for submissions in 2006 without a reform bill intend to apply in 2005 to avoid restrictions. The new law. Secondly, the restrictive new law only allows a lot of people who were previously qualified to apply for disqualification.

What happened to the credit card lobby through the Bankruptcy Reform Act, and the tank economy has already returned. Now more American citizens now have Eligibility to apply for bankruptcy, although they are undoubtedly unhappy about this.


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