The economy has been faltering lately, but the news is not so new. Up until more recent developments, hundreds of thousands of Americans have been struggling to keep up with their debt payments, while their personal financial matters have been barely floating above ruinous water amidst such morose issues as extravagant gas prices, expensive food and consumables, utilities, car payments, and many more concerns that the average American deals with on a daily basis.

Truly, it has been hard for several years now, and one of the things that more and more Americans are turning to is bankruptcy. While this is certainly not the best option in most cases, when considered carefully, it is a powerful but tragic last resort that should be kept as the final solution to their personal financial issues. Regardless, bankruptcy has managed to become an often-used solution for those that feel as if their lives have spiraled out of control and they’re looking to consolidate their debts into a single source that they can manage by itself.

Just last year, the number of bankruptcy filings managed to reach a total of 850,912, which is a staggering figure that is 38% higher than the reported figure for 2006, which was 617,660. Even though these are very high numbers, the truth of the matter is that bankruptcies were significantly higher at the beginning of the century. However, this can be attributed mainly to the fact that bankruptcy no longer clears debt due to the changes enacted by legislation around 2005.

Indeed, a new law was passed that made it significantly more difficult for consumers to seek protection from creditors by using bankruptcy as a proverbial shield. Despite the changes, many US citizens loaded with immense mortgage payments and other debt loads have still turned to the last resort when it comes to managing their personal financial matters.

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