U.S. Families Lost Over One-Third of Wealth in Recession; Chicago Bankruptcy Can Aid Financial Recovery
If you feel poorer since the recession, you're not imagining things.
Between 2007 and 2010, the median wealth of American families fell by 39 percent, according to the Federal Reserve. In 2007 alone, wealth dropped from $126,400 to just $77,300.
Middle-class households suffered the greatest declines because much of their financial wealth is tied up in their homes, which plummeted in value during that period.
As we reported on our Chicago Bankruptcy Lawyer Blog earlier this year, it's estimated that almost half of all Chicago mortgages are underwater.
Income, another factor in household wealth, fell by 7.7 percent for the average consumer - to pre-1992 levels. In comparison, incomes of the wealthiest tenth of Americans declined by just 5.3 percent.
Things don't look to be getting much better. This April, median U.S. incomes were still 5.9 percent lower than they were in June 2009, when the recession is said to have ended.
Unfortunately, bills and outstanding debts don't drop when income does. How can families be expected to save for college or retirement when their earnings won't even cover the mortgage?
Bankruptcy was created to protect consumers in scenarios just like this one. By filing for Chicago bankruptcy, Illinois families can stay afloat during tough times by reducing the weight of common debts.
For those with qualifying incomes, Chapter 7 bankruptcy has the power to completely eliminate unsecured debts like credit card debt.
For those who just need a break from the hounding of creditors, Chapter 13 offers a way to reorganize debt and protect assets - including your home - as you make simplified payments.
Your wealth may be declining, but your quality of life doesn't have to. Bankruptcy can stop the financial bleeding, allowing your family's finances - and pride - to recover.
If you would like to speak with a Chicago bankruptcy attorney about your debt or mortgage situation, contact the DebtStoppers Bankruptcy Law Firm at 800-440-7235. Call today for your free personal debt analysis.
More Blog Entries:
Chicago Bankruptcy Proves Valuable for Struggling Homeowners in City's Fragile Housing Market: April 13, 2012
Unpaid Medical Bills Lead Many Consumers to File for Chicago Bankruptcy: March 19, 2012
Additional Resources:
Fed: Recession Kicked Median Household Wealth to 1992 Level, by Tim Mullaney, USA Today