Will Obama Job Plan Decrease Bankruptcy Filings?
The economy is ailing. It has been for a long time. The unemployment rate remains steadily above 9% and there is no indication that that is going to change any time soon. As a result of the economic problems our country has been facing for the last several years, bankruptcy filings are very high. As more people become unemployment they are unable to meet their debt obligations and very often pushed into filing for bankruptcy.
Recognizing the dire circumstances of our economy and hoping to provide relief to the millions of unemployed Americans, the President recently proposed a new jobs plan. The question in everyone’s minds is whether this new jobs plan will actually produce jobs, and thereby, stave off more bankruptcy filings.
A central part of Mr. Obama’s plan is an increase in public works, that is providing jobs to construction workers as well as teachers. The problem with this proposal is that public works are funded by taxes, which means that the money used to produce those new jobs have to be taken from private individuals to give to other individuals. In terms of bankruptcy filings this is unlikely to have an overall effect of increasing the amount of jobs. This is not good news for the unemployed and not good news for Utah bankruptcy filings.
However, there are some provisions of the jobs plan that may provide a respite for those considering bankruptcy filings. The provisions that provide tax breaks to small businesses may result in additional hiring which can help decrease bankruptcy filings in the future.
One thing is clear, Utahns, as well as all Americans need some kind of solution to the economic problems affecting all of us. We understand that you may be out of work and unable to meet your debts. If that is the case our Utah bankruptcy lawyers can help you. Give us a call at 801.413.1753 so that get you started on a track to financial freedom.