Bankruptcy and the Middle Class – Massive Job Losses Push Middle Class Into Bankruptcy

In part one of our series about why the middle class is becoming more vulnerable to bankruptcy, we discussed the swelling numbers of Americans who have a college education and own homes filing bankruptcy. In part two of this series, we will explore how the massive numbers of job losses and rising unemployment rate is pushing more middle-class Americans into Chapter 7 and Chapter 13 bankruptcy.

Part II – Job Losses Become Permanent

Just one generation ago, the average middle-class American family could survive and thrive with only one spouse working. But in recent years, having one breadwinner in the family has not been enough to hold on to a middle-class lifestyle. Most Americans now depend on having both spouses working and even then the income they earn is just barely enough to maintain a home, cars and send the kids to private schools and college. This is why any hiccup in their lives could send them into financial crisis. Medical emergencies, a job loss, or even a reduction in salary could force them into a bankruptcy. (more…)