The Pains of Bankruptcy

Wednesday, March 16, 2011


I have seen a lot of people suffering in the US after the recession. I have friends who went through the same trials as everybody else there and still... they haven't recovered because they earn so little than what they used to. Filing bankruptcy was one of the easy things to do at that time but there are really big repercussions in doing that. The measly help from the government would not be able to get the children to school nor feed them three times a day. If this happened to them it would surely be possible anywhere else in the world.

United States insolvency dossiers increased to almost 14% at the end of the 2010 fiscal year. Bankruptcies dropped slightly from 2009 for non businesses. Although at the same period Chapter 7 liquidation and Chapter 13 reorganization (the one for personal bankruptcy) indicated significant increases. This has been affirmed by well known Sacramento bankruptcy attorney Gerald Glazer.

The worldwide and US recession that began in December 2007 ended in June 2009. This makes it the longest since the Great Depression. The National Bureau of Economic Research confirms this as we have seen the worse 18 months in that same period. These businesses appear to be recovering now but personal bankruptcy still lingers because of long-term unemployment and re-employment of the same people with lower indicated earnings. I hope it would not happen to us anytime soon. I am hopeful that the country's economic managers would be able to formulate a way to produce safeguards so we wouldn't suffer the same fate. Otherwise we'll stay in the third world title for a longer time.







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4 comments:

jezonhamster said...

katakot lang talaga mabankrupt. meaning zero. back to scratch ka pag nagkataon. :(

The Gasoline Dude said...

The Philippines might be a third world country... FOREVER.

KUMAGCOW said...

Hopefully not gasul... let's be optimistic =)

jezonhamster said...

katakot lang talaga mabankrupt. meaning zero. back to scratch ka pag nagkataon. :(