Middle Class Turns Homeless Due to Debt That Can Be Lifted Through Los Angeles Bankruptcy
Time Magazine recently published a story about how more middle class Americans are seeking help from homeless shelters as the poor economy causes people to look for any help available.
One of those avenues is by filing for Los Angeles bankruptcy. For those who have lost their jobs and are struggling to pay their bills‚ these times can be very stressful. Losing a house can be devastating as foreclosures have taken over our country.
But bankruptcy can help. Filing for bankruptcy immediately halts a foreclosure — no matter what stage of the process it is in. For those who qualify‚ bankruptcy can whip out years of built-up debt that is making life impossible. An experienced Los Angeles Bankruptcy Lawyer can help consumers discover which options work best.
The Time article focuses on the family of a formerly high-profit movie producer‚ who worked on movies that grossed millions. Yet after losing work and being unable to get back on his feet‚ his family lost their house and were forced to rely on homeless shelters to get by.
The family has people pick up their 8-year-old son nearby loft complex to hide that he’s living in a shelter. He attends school in his old neighborhood.
The number of homeless in California is on the rise‚ but it’s members of the former middle class that are increasingly seeking help. The Union Rescue Mission has seen its membership increase three-fold in the three years since the economy began crumbling.
Unemployment in California is at a soaring rate — 12 percent according to the U.S. Department of Labor’s Bureau of Labor Statistics. And few have provided ways to get the state out of its current economic debacle.
Economists have said job losses in recent years are ahead of 1990 and 2001 recessions. California’s jobless rate is the second-worst in the nation. The rate of those looking to obtain work sits at 22 percent‚ 6 percent higher than the national average.
When people lose their job‚ the most expensive payment is usually a mortgage payment. And once that house goes into foreclosure‚ people must find a place to live. If they don’t have much in savings and don’t have a job‚ it’s probably going to be difficult to rent a place. Many don’t know where to turn.
Bankruptcy can help. In many cases‚ it can protect a family long before life reaches such a breaking point.
For those who don’t know where to look‚ consider filing bankruptcy. First of all‚ bankruptcy stops foreclosure‚ so even if many payments have been missed‚ it’s possible to stay in the home while the bankruptcy process is ongoing. Other debts‚ such as outstanding utility bills‚ credit card debt‚ medical bills and other debt could be eliminated as part of the process.
This process can give consumers a fresh start as they struggle to cope with mounds of debt and creditors who are making life difficult. It can give people the kind of relief that can help them recover‚ rather than be saddled with bills that don’t allow for any kind of breakthrough from financial disaster.
Los Angeles Bankruptcy Attorneys will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale‚ and San Fernando Valley‚ just call (800) 568-0707.
Down and Out in L.A.: When the Middle Class Goes Homeless‚ by Jens Erik Gould‚ Time