Bankruptcy laws by definition have been created to help people who can no longer pay their creditors and get a fresh start. Bankruptcy laws help people liquidate their assets to pay debts off or help them create a repayment plan.
Desiring a fresh start for her children Nadya Suleman, familiar with the name Octomom filed for bankruptcy. She is filing for chapter 7 bankruptcy which means that a court appointed trustee will liquidate her assets before she is allowed to be discharged of her debts. Ms Suleman also owes around $ 30,000 in rent payment. It is important to note that what Ms Suleman represents is a trend. A trend that many American households face, lack of financial stability and the inability to pay off debts, Today’s bankruptcy filing number reflects the sustained and growing financial stress on US households, said American Bankruptcy Institute Executive Director Samuel J. Gerdano. “Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year”. Though the Octomom is famous for totally different reasons, her dire situation is real for many Americans. The unemployed single mother had been supporting her six other children with the aid of food stamps and Social Security disability payments — sources of income that she continues to rely on.
Though the trend of filings for bankruptcies has been varied since the 1980’s the past few years have seen the uphill trend owing to the whole economic climate. 2008 saw some of the biggest bankruptcy filings in the history of the United States biggest being the Lehman Brothers.
University of Birmingham, UK