Bankruptcy And Debts Blog 15 August 2008

15 August 2008

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Posted at 15:25 0 comments

15 August 2008

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Posted by James Breen at 8/15/2008 9:13:00 AM

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Posted at 9:13 0 comments

People file for bankruptcy because they're in debt. The more debt there is, the more bankruptcies there are. Well, duh! It really is that simple. When compared to the level of borrowing, the rate of bankruptcy has remained fairly steady. In 1977, 74 bankruptcies were filed for every $100 million of consumer debt. In 1997, 73 bankruptcies were filed for every $100 million of consumer debt. Bankruptcy isn't the cause of debt but rather is the result. And it isn't the disease but rather is one of the cures. Restricting access to bankruptcy court won't solve the problem of debt any more than closing the hospitals will cure a plague.

Bankruptcy And Debts