Bankruptcy

If Everyone is Bankrupt, Is Anyone Bankrupt? At least You'll Be in Good Company!

By Joseph McDaniel, Esq.

But I ran into a discussion on Rasmussen Reports about a Congressional Budget Office Report, and the paragraphs caused me anxiety, because I am concerned that we are headed, as a country, for massive economic problems. Not the little, cute ones we have now. And those problems scare me.

I'm not smart enough to fix 'em, but this is pretty clear to me; all of the administrations since 1950 have presided over an expansion in the size and cost of government in the United States.

Now, I'm an ordinary guy and I like ordinary luxuries. If it's winter, I like a heated seat in the car. Pretty nifty.

But I also know I can't afford massive luxuries, like a Rolls Royce Silver Cloud, or a private jet, because...well, a guy's gotta eat, you know?

My feeling right now is that every administration since I was born was pretty generous; they wanted us to have a Rolls Royce/Private Jet kind of a government.

And I'm feeling that we just can't afford that much government, no matter which party is at the helm.

The two paragraphs that scared me follow:

The Congressional Budget Office reported in the summary of its document, "The Long-Term Budget Outlook": "The federal budget is on an unsustainable path -- meaning that federal debt will continue to grow much faster than the economy over the long run. ... Rising costs for health care and the aging of the U.S. population will cause federal spending to increase rapidly. ...

"... Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress income growth. ... The accumulation of debt would seriously harm the economy. Alternatively, if spending grew as projected and taxes were raised in tandem, tax rates would have to reach levels never seen in the United States (the highest marginal income tax rate so far: 94 percent, in 1944-45). High tax rates would slow the growth of the economy, making the spending burden harder to bear."

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I get to see what happens when ordinary humans (and some who are extraordinary) spend more money than they have.

So if the United States files bankruptcy, what exemptions will apply?

Just wondering.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on May 13, 2010 (boomark / email).