Bankruptcy Facts

YOU NEED TO KNOW BANKRUPTCY BANKRUPTCY FILINGS HAVE BECOME QUITE THE NORM FOR STRUGGLING FAMILIES AND BUSINESSES IN TODAY'S ECONOMY. THE NUMBER OF BANKRUPTCY FILINGS FROM 2006 TO THE PRESENT HAS RISEN TO OVER 5,5 MILLION AND SHOWS LITTLE SIGN OF DECLINE. HERE ARE SOME FACTS REGARDING BANKRUPTCY THAT YOU MAY NOT HAVE KNOWN BANKRUPTCY TODAY PERSONAL FILINGS (NON-BUSINESS) ACCOUNT FOR 96% OF ALL FILINGS THE MOST FILINGS OF ANY STATE WERE SUBMITTED IN NEVADA ALASKA HAD THE FEWEST IN THE PAST 5 YEARS TOP 10 STATES FOR BANKRUPTCY ARE REPEAT FILINGS MAKE UP AS MUCH AS 20% OF ALL FILINGS NEVADA, TENNESSEE, GEORGIA, ACCORDING TO EXPERTS. INDIANA, ALABAMA, CALIFORNIA, MICHIGAN COLORADO, UTAH, & ARIZONA THEY ALSO HAVE 17 CREDIT CARDS AND $10,000 IN CREDIT DEBT THE AVERAGE FILER IS A 38 YEAR OLD MIDDLE-CLASS HOMEOWNER WITH A COLLEGE DEGREE TIMES AND EVENTS HOME PRICES $1.6 $3.2 INCREASED BY 124% TRILLION TRILLION BETWEEN 1999 LENT TO IN CDO'S WERE AND 2004 HOMEOWNERS WITH BAD CREDIT CREATED 1997 2000 2005 2011 NET CAPITAL RULE SUMMER 2004 MORE LEVERAGE, LESS OVERSIGHT S Bear Stearns increases it's leverage ratio to 33:1 (S33 debt to $1 equity) S 7 members of SEC assigned to monitor the big companies, but from March 2007 - Oct 2008, ZERO inspections had been made CHANGE TO BANKRUPTCY LAW FALL 2005 STRICTER REQUIREMENTS FOR CH. 7 S Now require Proof of Income S Mandatory Credit Counseling S Child Support and Alimony Payments are Top Priority Creditors S Removed Automatic Stay Protection 1ST STIMULUS PACKAGE FALL 2008 KICK-STARTING THE ECONOMY S Tax Payers received rebate of 10% of household income up to S600 $ 3.5% increase in mer spending S No increase in consumption (most used it to pay down debt or saved it) S Tax cuts were not balanced by a decrease in government spending and led to $500 billion budget deficit S Contributed to downward pressure on the dollar, increased oil prices and inflation A 5 YEAR VIEW FROM 2006 TO 2010, MORE THAN 5.5 MILLION PEOPLE FILED FOR BANKRUPTCY OF THOSE, ONLY 11% FILED IN 2006. THE PERCENTAGES JUST GET HIGHER FROM THERE 2010 2008 SOURCES http: money.cn.com 2005/1017/pt'debt banknuptey law hittp:/www.money-zine.com/linancial Planning Debt-Consolidatia a Bankruptey-Law-Chunges http://www.nytimes.com 2008 10/03 business 03sec html? http:/useconomy.about.com od fiscalpolicy p bush tasx rebute.htm http:/blogs.wsj.com/econcninica 2008:07/30 the-2008-economic-sti http://en. wikipedin.org wiki Economic Stimulus Act o f 2008 Ittp://www.oecd.org/dataoood 36/27/40451721.pdt http://www.federalteserve gov pubsfeds 2007/200720 2 00720pup.pdf http:/www.time.com time/specials paokuges article 2 S804, 1877351 1877350 1877331,00 html http:/www.bloonberg com/apps'news?pid-newsarchiv esid-uxvtyn Vido mulus-first-take-cn-consumer-response http:en wikipediu or'wiki Eecnomic Stimulus Aet of 2008 http://www.oeed.org dataoeed 36 27/40451721.pdf 2007 2006