Brandon, FL (Law Firm Newswire) JUNE 11, 2012 - A greater percentage of bankruptcies are filed as joint cases.
Combining two incomes can often strengthen a household's finances. Two earners can contribute more to savings and retirement planning. Unfortunately, a two-income household often becomes dependent on both partners, so when one loses a job, the household can suffer from underemployment.
Couples are more likely to purchase large luxury items, such as vacation homes, and often choose to live in larger homes in safer neighborhoods. However, even with proper planning, an unexpected event in the family can lead a couple to bankruptcy, which is why 44% of bankruptcies are joint filings.
“It’s easy for a successful couple to buy nicer homes, cars, and travel more, when both are gainfully employed. If the home's expenses are based on the total household income, a decrease in that income could have long-term effects. Credit cards may be used to cover bills, which will lead to more expense in the future. Ultimately, the couple has to do what's best to protect their assets and get back on the right track. Filing a joint chapter 7 bankruptcy may be the best solution,” said Tampa Bankruptcy lawyer, Reginald Osenton of the Osenton Law Offices.
Of course, many couples do not face bankruptcy because of lavish spending. As salaries remain flat and inflation increases, even two-income households can struggle to make ends meet.
Since 2000, median household incomes have dropped 7%, while annual inflation has increased between 2% and 3% every year except 2009. In 2009, the U.S. experienced an inflation rate of -0.34.
“As expenses go up and incomes go down, many couples will need to review their options regarding their finances. If a large portion of your household income is servicing unsecured debt, a bankruptcy may make it easier to cover your cost of living” said Tampa bankruptcy attorney, Osenton.
Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777