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Anson Indiana Bankruptcy

Anson Indiana Bankruptcy Cases: New Development Not Spared

Anson Indiana Bankruptcy

Being an attorney near the Anson Indiana development, I have observed that the area has not been spared from the need to file bankruptcy.  Anson Indiana was one of the largest and boldest planned-unit developments in the United States.   It has survived the recession and continues to grow.  However, many of the local debt-ridden residents are facing the pains of insolvency and bankruptcy.  A couple factors found within the Anson development may be contributing to Anson’s continued need for personal bankruptcy filings

Bankruptcy caused by Anson’s Housing not Matching the Job Opportunities

Anson is a higher-end housing development with various new luxury apartments, houses, and condominiums to choose among.  These high-end housing units come with high-end monthly costs that have pushed many residents into tight budgets.  Most of the employers in the area also do not provide high-end positions, the most of these positions being warehousing jobs.  This can create situations where residents are using too much of their income for housing instead of other expenses.  Excessive housing expenses create impossible budgets where eventually credit is used in order to just service monthly bills.   This cycle results in the lack of savings and creditors building up until the resident needs to file for bankruptcy.

Bankruptcy caused by Sub-Division Homes being Bought with High Mortgages

Anson bankruptcy is also common due to the prevalence of mortgages being used to purchase homes within the tight subdivision developments.  Traditionally, sub-division homes are sold by large builders through a mortgage brokerage system.  These type of homes are more likely to have poor mortgage deals than traditional rural or urban settings.  These developments are frequently like a mortgage factory, producing as many housing units and accompanying high-cost mortgages as possible.    These excessive mortgages create a highly-leveraged community that is not usually focused on savings and investment.   The result is a continuous trickle of bankruptcy as accompanying consumer debt rises.

Conclusion: Bankruptcy is Anson is Common and Very Much Needed

If you have found yourself in a similar situation as described above, you are not alone.  These developments build wonderful infrastructure and housing.  They do also, however, create massive of amounts of debt.  If you need to get relief from your debts, do not wait until the situation gets out of control.  Contact our Anson Bankruptcy office and we will help you get the recovery you need.

Millennial Bankruptcy

Millennial BankruptcyMillennial bankruptcy is now rising in numbers.  Members of this generation are now reaching their 20’s to mid 30’s.  By this age, they easily have had sufficient time to build up impossible debt situations.   The future outlook for millennial bankruptcy appears strong and on the rise.  Millennial bankruptcy could be attributed to a new viewpoint common within the generation.

Millennials Know Nothing Else But Debt

Millennial bankruptcy could be on the rise simply because this generation has never been exposed to anything different than the debt-ridden lifestyle.  Gen X, baby-boomers, and or older generations such as the silent generation were either directly or indirectly exposed to a debt-free, paid-in-full lifestyle.   Mortgages came more heavily on the scene during the 1950’s.   Credit Cards came heavily on the scene in the 1980’s.  Student Loans came heavily on the scene during the 1990’s.  All of these generations either lived before these times or had parents and direct relatives who lived during these times.  Essentially, these generations were raised with the understanding that life was actually possible (and more pleasant!) without large amounts of debt.

To these earlier generations, a debt-ridden lifestyle was just an option.  Millennials, for the most part, know nothing else but debt.  They have not been exposed to a debt-free lifestyle.  It is nothing for most millennials to buy a home for $200,000 with a mortgage.  Saving for a paid-in-full or affordable home was never an option within their understanding.  To millennials, all people have always purchased homes through high-dollar mortgages.  This generation knows nothing different than mortgages, student loans, and credit cards.

Millennials Know Nothing Else But Very Modern Comforts

The age of scraping-to-get-by was never exposed to most millennials.  The pioneer age, the depression, and the modest lifestyle that most people heartily enjoyed during the 1900’s is only distant history to the millennial generation.  Most millennials grew up with material comforts and even luxuries that earlier generations never enjoyed, or at least never took for granted.

Because of this background of material comfort, many millennials expect to achieve a high level of material abundance at an earlier age.  This is usually achieved by use of credit, especially in the form of mortgages, automobile loans, or other purchase loans.  This credit-financed material abundance commonly forces millennials into bankruptcy.  They are forced to live a tight budget for many years until the build-up of credit cards or other debts overwhelms them.

This Bright, New Generation is Falling into the Same Debt Snares

What many saw as a bright, new generation with new social norms and other positive characteristics also seem to fall just easily as the previous generations into the traps of debt.   Time may prove that the millennial generation may even be more at risk.  Most were never exposed to the economic simplicity of earlier generations.  Millennial bankruptcy is on the rise. The next round of financial woes our nation faces could very well cause millennials to set new records for bankruptcy filings.

Public Service Student Loan Forgiveness Law Change

Did the Public Service Student Loan Forgiveness Law Change?

Student in cap and gown

The first wave of 10-year faithful payers under the public service student loan forgiveness program (PSLF) will soon mature. These payers should have their loans forgiven under this program for their 10 years of work as a public employee. Now, it appears that the Department of Education is signaling that such generous loan forgiveness may never happen as promised.

The Public Service Loan Forgiveness Program (PSLF)

The U.S. Congress created PSLF through the College Cost Reduction and Access Act of 2007. To qualify, the participant was required to work for any qualified public or non-for-profit employment. In addition, they were required to make 120 on-time, monthly payments (10 years of payments). Upon completion, the student loan borrowers would be rewarded with the entirety of their student loans being “forgiven” under this law. At least, this was the story everyone participating was told. The way things are going it looks like the government may be going back on their word.

Signs That a Law Change to PSLF is Coming

U.S. Department of Education is taking legal steps to reduce the number of qualified recipients under the program. The Republican budget proposal also eliminates the funding for such a program. The U.S. Government is realizing that the cost of the program far exceed original expectations. Essentially, the government is not going to be able to afford the payouts required to indefinitely continue the PSLF program.

Will Anybody Receive the Promised PSLF Relief? Will They Retain the Full Balance of Their Loans?

Although it is too soon to be sure, doubts are arising as to whether the original participants in the program will receive any student loan forgiveness. The first wave of qualified participants should be in October of 2017. With dubious legal challenges as to who qualifies along with a lack of budget funding, many are getting nervous. If you are currently participating in the PSLF program, make sure to keep an eye on how the first wave of participants are treated. If you are intentionally working in the public sector due to this program, the defunding or eligibility shifting that may soon occur may force you to rethink your employment options.

Puerto Rico Bankruptcy

Puerto Rico Bankruptcy – What Does This Mean for the U.S.?

Puerto Rico Bankruptcy

Puerto Rico, a U.S. territory, has become completely bankrupt: it can no longer service its debts. Puerto Rico is barred technically from filing for bankruptcy due to its territory status. However, similar reorganization relief will be sought under PROMESA (the Puerto Rico Oversight, Management, and Economic Stability Act) that was passed by congress in 2016.

The magnitude of Puerto Rico’s “Bankruptcy” must first be put into perspective. Puerto Rico itself and many of its associated governmental and community based systems are now seeking bankruptcy-like relief. The debts associated with Puerto Rico’s bankruptcy alone reach over $70 billion. To put this in comparison, the infamous 2013 Detroit Chapter 9 bankruptcy was dealing with an estimated $19 billion debt load. Further back, the largest municipal bankruptcy had a debt load of approximately $4 billion during the Jefferson County, Alabama filing in 2011.

Municipal bankruptcies are rare – at least until now. The worrisome aspect that confronts the U.S. is that these municipal bankruptcies are growing. They are growing in size and debt load. Puerto Rico has a population of almost 3.5 million people. Detroit’s population was less than 20% of Puerto Rico at 680,000 people. This new Puerto Rico bankruptcy poses the question: will entire U.S. states be next?

Municipal bankruptcy is becoming a common concept. It is becoming normal and acceptable. As global debt systems begin to default on a wide scale, there may be no limits to what governments and states will fall into bankruptcy (or its equivalent). The dominoes of our overladen debt system will fall. It is not a question of if more will fall. It is a question of how many and in what manner.

The U.S. national debt is approximately $17 trillion. Much different than almost all other nations, the U.S. has only meager supplies of foreign exchange currency, gold, or other reserve methods. Although the U.S. currency is the primary world reserve currency, this arrangement to indefinitely perpetuate the unlimited spending of the U.S. cannot continue forever. Eventually, there must be some form of financial correction. Balance sheets can only be stretched so far even if everybody is playing on the same team. Eventually, it just deviates too far from reality.
Essentially, Puerto Rico’s bankruptcy may be the start of a long over due U.S. financial correction and reorganization. This reorganization may go from the bottom all the way to the top.

Retail Apocalypse: Will It Stop With Just the Retailers?

Indianapolis Bankruptcy Attorney John Bymaster analyzes the retail apocalypse

A common fear across the United States is that we are facing a “Retail Apocalypse.”   This new term has been coined to express how retailers  are filing bankruptcy and shutting down in droves across the United States.  As the transition from physical retail stores to online retailers continues, the damage to our economy may far surpass just losses in the retail industry .  It may mark a major shift in our economy.  A massive “domino effect” could likely occur that could send our nation into a deep recession.

Retail Stores Occupy Extensive Commercial Real Estate

Commercial real estate is already suffered high losses due to business shut-downs related to the 2008 financial crisis.  The progressive shutdown of retail stores such as Sears, American Apparel, and many others has caused immediate vacancies in commercial real estate across the United States.  Commercial real estate interdependent exists with a variety of other industries.  Many commercial hubs such as malls and strip stores cannot realize profits after they lose their neighbor business.  The loss of accompanying shops or anchor stores will also put them out of business.   

This progression appears to be creating a “domino effect” where more and more commercial space becomes vacant.  Countless jobs and revenue streams will be lost during this process.   Although this is obviously a transitory process related to new technology and online shopping to an extent, a major economic “foundation shaking” is occurring across the United States.  This trend may go far beyond what most people are realizing.

Are Traditional Consumer Products and Service Systems Coming to an End as We Know It?  

Trends towards digital products and electronic items such as phones or tablets are replacing the continual consumer product renewal focus in the United States.   With physical retailers going out, people have less incentive to leave their homes for consumer spending as well.  The trend towards digital products may end up destroying the physical consumer product and service spending dynamic that has driven our economy for the last 50 years or greater.   

Therefore, even domestic production and service industries could be in grave danger as this economic shift continues.   This shift from a “physical” goods and services concept to a more online, digital economic world may be insufficiently categorized as a mere “retailer apocalypse.”   It may simply be complete Economic Apocalypse.  It could very well be the destruction of  consumer economics as we have known and understood it for the last 50 years or greater.  Massive changes and a recession could be ahead of us.  On the other side of the coin, new opportunities will also likely abound.