Filing Bankruptcy is not just for low income people
San Jose, Bay Area California: More middle class families file for bankruptcy
As reported in USA Today, a new study by Elizabeth Warren, Harvard Law School Leo Gottlieb professor of law, and Deborah Thorne, Ohio University associate professor of sociology, finds that personal bankruptcy has become a largely middle-class phenomenon led by filers who are college-educated and owners of homes. According to the study, "The Vulnerable Middle Class: Bankruptcy and Class Status," the shift occurred even before the Great Recession.
More than 100,000 middle-class families filed for personal bankruptcy every month in 2007, says the report, which was provided to USA TODAY but will be released in a book next year. Those who filed in 2007 were in worse financial shape than those who had filed in 2001.
"The bankruptcy filings are a warning about the risks now facing middle-class Americans," says Warren, chair of the Congressional Oversight Panel on the Troubled Asset Relief Program (TARP). No longer can they count on a college education, a good job and home ownership to protect them from financial collapse.
There are increase in the number of people with college degrees who file bankruptcy
The current situation of our economy have resulted to an increase in the number of middle income families filing bankruptcy. Most of these middle income families have college degrees. The foreclosure and mortgage problems in San Jose, Gilroy, Oakland, Tracy and Antioch area helped to make the financial situation for most people worst. Some financial analyst claim that the problem is not yet over in the Bay Area. Bankruptcy attorney and lawyer, Geoffrey C. Nwosu have helped many middle class income families file bankruptcy in northern California. You can reach the Law Office of Geoffrey C. Nwosu at 408-912-5983 or www.nwosulaw.com