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Bankruptcy is Often Caused By Unemployment

By Joseph McDaniel, Esq.

The Los Angeles Times tells us that unemployment remains high (the official number is around nine per cent; my personal guess as to the real number is closer to nineteen).

Now, unemployment is only one of the major factors that contributes to a person's decision to file a bankruptcy case and get a fresh start.

But it is one of the major factors.

There's very little that's as effective as a zero-balance paycheck to push somebody towards a moment of clarity. When they see the numbers clearly.

Note that the precipitating factor may not be losing the job in the first place; the usual push that gets somebody's attention is "You've been served!" or "Nice house you got here; you'll have it for 90 days, unless you come current, because this is a Trustee's Sale Notice!" (And no; you don't get personally served for a Trustee's Sale; generally you get a letter, and a notice stapled to your front door, and a sign pounded in your front yard. Which just about everybody promptly pulls off and out, respectively).

I sort of wish we had the sort of employment that we used to have, when we permitted manufacturing in the United States; but I guess it is a better thing for all the manufacturing in the world to happen in China. Because the government there is, after all, morally superior!

And you may recall, if you are very old, that we won World War II for only one reason; that the United States had far better manufacturing capacity than the bad guys (currently "our allies"). German tanks, for instance, were far better than ours, but we could out-build them five to one! So we did, and they lost!

I wonder what will happen if we go into a serious war with no manufacturing capacity to speak of, and no particular way to get our hands on oil, and we haven't built any nuclear power plants (the kind that are all over Japan and France, where they have zero problems with them).

 

Full post as published by Arizona Bankruptcy Attorney Blog on February 04, 2011 (boomark / email).