La Mesa Bankruptcy Attorney Explains Why Bankruptcy Filings May Rise in 2018

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( — March 6, 2018) — Even in an improving economy people get into financial problems As the economy improves consumers take on more debt and that can lead to a tipping point in your financial picture.

Noted La Mesa bankruptcy attorney Michael Koch explains the relationship between household debt and bankruptcy filings. Research indicates there is a correlation between household debt and bankruptcies.

Household debt not only includes your mortgage, but your credit card debt, student loans, car loans and any other revolving credit that you may have. All of those saw an increase in 2016 and were expected to hit record levels in 2017. Revolving credit increased at an annual rate of 9.9% in October of 2017.

Federal reserve numbers indicate that the pace of accumulating revolving consumer debt has picked up recently. Most of this is credit card debt, which is not a good sign. While revolving debt averaged between 4-6% between 2014-2016, it now appears to be near 8%.

When consumers begin increasing revolving debt to meet their monthly expenses, that’s not a good sign. That can lead to the tipping point in bankruptcy filings in 2018. Other factors that may affect those numbers include tax reform, loss of medical health insurance and other political changes that may happen.

If debt levels continue to rise you may see an increase in bankruptcy filings. Of course, natural disasters such as hurricanes in Florida or fires in California and elsewhere can push people into bankruptcy as well.

The best advice is to seek advice if you think you’re at or approaching the tipping point in your own finances. La Mesa bankruptcy firm offers a compassionate, client-friendly, and systematic approach to each case, tailoring their approach to a case based on a client’s unique situation. Michael’s sound legal advice and representation services help clients restructure debts, assert and keep their legal rights, understand the bankruptcy process as it applies to each case, and provides strong legal guidance through the process.

At the Law Office of Michael Koch, he says that the initial consultation is always free. His goal is to keep you out of trouble before it happens, but to be there if you need help now. Don’t wait until the house is on fire, so to speak, to seek help. It’s better to be proactive with your financial issues.