Layoffs and pay cuts motivated more people into looking into bankruptcy throughout the last year, and authorities allege that the situation will probably not going to improve until the unemployment issue improves. In Wisconsin, bankruptcy filings sky rocketed to 30 percent in 2009. This came on top of a 35 percent increase in the preceding year.

Bankruptcy lawyers say that not only is it layoffs and firings that are motivation to file. It’s the losses of once-regular over time pay and full time status that have left consumers unable to keep up with monthly payments that were not an issue to pay.

U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press shows us that more than 1.4 million bankruptcies were filed in 2009, an sharp increase of about 32% from 2008.

And despite the fact that bankruptcy takes away the lintimidating debt and offers consumers a fresh financial start, people might very well remain without a job and are not able to find employment to get a decent income again.

Even more depressing, unless the economy improves enough for industries to start hiring again, there is not much reason to think that bankruptcies will go down in 2010. Researchers have noted that home foreclosures will continue to pile up in 2010 because people who previously had adequate credit have lost employment and cannot keep up with payments.

Bankruptcy might seem like a good option to obtain a fresh start, but it has a negative effect on your credit report for ten years, rendering you unable to get a car, place of residence, or employment. Before you decide to declare bankruptcy, it might be a smart decision to speak with your creditors and see if some sort of repayment plan can be worked out.

Mallory McGuinness works for a debt collection company. She also composes stories on business, finance, consumer spending and collection agencies. Click here to get your own unique version of this article with free reprint rights.

• ISBN13: 9780740769627
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The 16% Solution: How to Get High Interest Rates in a Low-Interest World with Tax Lien Certificates, Revised Edition

Product Description
This revised edition is arriving just in time to inform investors how to take advantage of today’s slumping U.S. economy. With home foreclosures at an all-time high and the erratic stock market damaging 401(k) accounts, people are looking for innovative ways to invest their money.Moskowitz explains what tax lien certificates are (liens against property for unpaid taxes), why they are safe (certain states insure them), and how they fit into an overall financial plan. This new edition includes updates to the laws and procedures of states and counties that offer tax lien certificates.* The 16% Solution has been updated to reflect current legal requirements and information.* Seen as a great investment solution: “I… More >>

The 16% Solution: How to Get High Interest Rates in a Low-Interest World with Tax Lien Certificates, Revised Edition