Bankruptcy and the Middle-Class

According to a recent report released by the Institute for Financial Literacy, the middle-class is filing for Chapter 7 and Chapter 13 at double the rates of years past.  The Institute for Financial Literacy has published a Consumer Bankruptcy Demographics Report annually since 2005. Prior to 2009, a large percentage of debtors were middle-aged Americans with high school diplomas or some college who made $35,000 a year or less. However, in the past year a highly educated middle-class couple earning $65,000 a year or more is more likely to file for bankruptcy. 

No longer is bankruptcy a dirty word relegated to the destitute.  Parents, neighbors, aunts and uncles are utilizing the tools Chapter 7 and Chapter 13 have to offer in order to stall harassing creditors and obtain a fresh start.  If you would like to explore all of the options available to you, contact an experienced Fears | Nachawati Law Firm attorney today.