Bankruptcies Up

Since the economy’s stability has come into question, some areas of the United State of America have noticed serious downfall, the reason not being precisely detected (even though it is suspected to be a result of the economic crisis which has shaken the economic state on a global level).

Where the situation is really tough right now is New York, the most populated part of the United States where high levels of unemployment and a drastic fall of the home value are everyday issues every man and woman from this state encounters.

Bankruptcy filings ran up about 14 per cent by the first two trimesters of this year which is a documented testimonial by the American Bankruptcy Institute. To be precise, the number of bankruptcy filings amounts to the unexpected number of 770.117 this June which is significantly bigger than that of June the previous year and it was 675.351.

Now, let us summarize: when we put high rate of unemployment, years and years of rising of the consumer’s debt and housing crisis together we get the picture of the current economic situation in the United States of America and it is far from good and the state of this situation can be compared to the economic issues that shook America in 2008.

For those not really familiar with that situation we will just mention the highlights of the economic crisis that shook America in 2005. Namely in the year of 2005, the American Congress made small yet significant changes in the Bankruptcy Code. This made the job of American citizens much harder which resulted in bankruptcy filings of a terrifying number of over 2.000.000.

As for this year, about 1.6 million bankruptcy filings are expected by the end of 2010. The economy state of this great force seems to go down. Only this June there were 126.270 bankruptcies on record, a number almost 9 per cent higher than that of June the previous year when there were 116.365 bankruptcy filings.

As for the reactions of American citizens after seeing these numbers and facts, they are very diverse. Many of them think that the American Dream is slowly but surely turning to their worst nightmare and even there is a number of those who think that this is only the beginning. However, there is a small number of the real enthusiasts who still believe in the healing powers of their country and state that there will be a better tomorrow for America. I’m one of them!