Increase in middle class bankruptcy filings
A new study to be released by Elizabeth Warren and Deborah Thorne “The Vulnerable Middle Class: Bankruptcy and Class Status” estimates that up to 100,000 middle class families filed for bankruptcy protection each month in 2007. It also estimates that more college educated individuals are filing for bankruptcy. The effect of the current recession is affecting all classes. I see more clients who are struggling to achieve the American dream of raising a family and owning a home. In many cases the house payments are not feasible for the income, and the houses are underwater. It seems that recently a house is not a good means of producing wealth given the housing boom and subsequent bust. With the falling home prices homes should become more affordable, allowing people reasonable monthly payments and a chance to build equity. The lower payments will also allow people some savings, so that they are less reliant on credit cards if they experience a job loss or other major life event. A more detailed article can be found at http://www.usatoday.com/money/perfi/general/2009-11-19-bankruptcy19_CV_N.htm.Write a comment
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