Mesa has seen a better economy in recent years, and it looks like the need to hire a debt relief lawyer in Mesa is changing. A better economy leads to more successful businesses and less debt-ridden people. The need to file for bankruptcy in Mesa due to excessive debt is really lowering. But what exactly is bankruptcy, and how does the local economy affect how we accumulate debt? Let’s look at some definitions to understand the process better.
Understanding what bankruptcy is
Bankruptcy is a legal process in which a business or person can wipe clean their debts. This is possible by proving that the entity does not have the assets or consistent income to pay off a looming debt or debts. In order to file for bankruptcy successfully, the person or business must prove the amount of assets and money they have and show that the debts that they have greatly outweigh those assets. Should they be successful, the court will absolve the entity of all or part of their debts. This comes at a price, though. Bankruptcy stays on your credit score for up to ten years and greatly affects your ability to get a credit score based loan. This can be detrimental for businesses that successfully file for bankruptcy. On one hand, their serious debts are absolved and they do not need to pay them back. On the other hand, loans and investments often keep a business going. If a business is already in debt, it is likely because their business has been unsuccessful in making much money. When that business files for bankruptcy, they will probably not be able to get additional loans to keep the business going. And so, the business will often have to be sold to someone else or completely close down permanently.
Mesa, Arizona is changing for the better economically
Low interest rates and better jobs are helping Mesa consumers and businesses stay debt free, or at the very least able to manage their debt without the need for a bankruptcy lawyer in Mesa. However, Mesa is far from perfect. There are some weak points in Mesa’s economy that have not been fixed.
Over the past five years, people have been filing for bankruptcy less and less. However, while middle class citizens are getting a brunt of this benefit, lower class families are struggling consistently.
The country is experiencing a dip in bankruptcy filings
Nationally, consumers are managing their debt better. Less than three percent of credit card accounts in early 2016 were a month or more overdue. This debt statistic was down over two and a half percent from late last year’s statistic of credit card debt. Some bankers are claiming that because more people have found employment, wages are seeing an increased, and home values have also been increased, people are turning to accumulating debt less and less than before.
The low interest rates are really helping too. Household monthly debt payments have dropped to ten percent this year. This is a welcomed dip from 2007, when household monthly debt payments were at nearly thirteen and a half percent. The debt burden has been at or under ten percent very rarely since the eighties, making this a great economical time. Households also hold approximately seven dollars in assets for every dollar they have in debt.
A United States recession will not be happening anytime soon
Global strategists are happy to report that there are no signs of a recession happening soon. The economy is growing, although at a slow pace. However, borrowing trends are appearing to rise at a rate higher than household incomes can handle. Most of this ties into the student loan crisis as well as increased auto loan debts this year. This trend may be something to be concerned about in the future, although these loan categories are modest. Sixty seven percent of all household debt in the United States is from mortgages, while nine percent accounts for student loans and less than seven percent account for auto loan debt. Hopefully, we can maintain our country’s current pleasant economic state and continue growing.
I need to file for bankruptcy and need a good Mesa, Arizona bankruptcy lawyer.
Luckily, My AZ Lawyers is here to help. We are an Arizona-based law firm that boasts a talented team of experienced, trained, and niche bankruptcy lawyers that will help you file for bankruptcy with detail and accuracy to avoid future hiccups and possible fraud chargers. Give us a call today to learn more about how we can help you file for bankruptcy with accuracy.