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Lack Of Bankruptcy Filings Could Be Troubling Sign

By Jordan Sharp

Posted November 2, 2015

Bankruptcy filings both nationally and in Indiana have been falling over the last two years.

While that may seem like a good sign, the trend could be more of an economic concern.

Filing for bankruptcy is normally considered a good option for people to discharge old debt and repair their credit.

However, with bankruptcy filings down, the reasons for the lack of filings bring even more concerns about the state of the economy.

"I think people need to file for bankruptcy. I see so many people come I my office and they need to file so they can clean out all the old debt. Our whole society is based on consuming, we're a consuming economy, and if they can't consume they're dead weight," said Mark Zuckerberg, a Bloomington bankruptcy attorney.

Zuckerberg adds most people that come into his office don't even have the $330 bankruptcy-filing fee, let alone the money needed to pay attorney fees.

With the large amount of new options for home owners falling behind on their mortgages, and with little wages to protect, most people who would normally benefit from filing bankruptcy don't because they have no assets left to protect.

Zuckerberg also says with labor participation low and with banks not pursuing bad debt, the cycle might continue for some time.

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Lack Of Bankruptcy Filings Could Be Troubling Sign

By Jordan Sharp

Posted November 2, 2015

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