Bled white and destroyed by Barack Obama’s “hope and change,” hundreds of thousands of Americans have been forced to use tax refunds to pay the filing costs of their bankruptcies. The National Bureau of Economic Research (NBER) reports that bankruptcy lawyers have seen an increase in personal bankruptcies filings which follow this pattern: many clients are filing bankruptcy soon after receiving their tax refunds.
This has been especially true since a law passed in 2005 made bankruptcy more costly and more difficult. For some people, in Barack Obama’s upside down America, as fast as money comes in, it goes to buy a bankruptcy file number. There are no plans for vacations or buying a new car for many people. As one bankruptcy lawyer explained the situation, “If people are expecting a big refund, they go as fast as they can to a tax preparer. They need the money so they can afford to file for bankruptcy.”
Filing costs that averaged around $ 921.00 before the law now cost most filers $1477 if not more. Of course, as usual, the big winners from this law are lawyers who get to charge higher fees based on more time spent to verify the facts presented by the individual seeking relief. The changes in the law were made to combat fraud, which is a worthy goal, but raising the filing fees has resulted in punishing many legitimate people who only want to have their debts cancelled so they can go on with their lives.
The NBER report’s author argues “…. if you want to curtail abuse, raising the cost is not a good way to do it. The people who really need bankruptcy are the ones who will be unable to pay for the fees.”
While it is true that there have been fewer bankruptcies since the new law went into effect, that is not necessarily a good thing. There has been little tangible benefit from the new rules for society in general, and many who need bankruptcy are denied discharge of their debts. Welcome to Obama’s upside-down America.
Photo Credit: Geoff Livingston (Creative Commons)
Please share this post with your friends and comment below. If you haven’t already, take a moment to sign up for our free newsletter above and friend us on Twitter and Facebook to get real time updates.
Follow @WestJournalism
Loading ...
Hey we’re spreading the wealth right? That dummy! No matter people are loosing their homes after loosing their jobs too probably. AND THERE ARE NO SHOVEL READY JOBS!!
Hate to see people lose their jobs but if the union workers would only loose theirs maybe they would wake up. Then they’d scream loud enough so this idiot socialist would not get re-elected.
What is another truly upsetting, unfair, probably illegal move is that HUD loans are insured by the government so banks really don’t loose a dime and don’t really care what happens to the owner. If you are upside down you have to go through a stupid, lengthy loss mitigation and there is no guarantee that they will help you. I know – 4 times now they’ve closed my application without telling me so now I have a HUD certified counselor helping me get through it. I’ll short sale my home if they don’t get on it and I won’t have to declare the credit on my tax next year if it sells this year. I’d sell it for a dollar to do that.
anyone who voted for his illegal morin deserves to lose their money they were stupid enough not to research this illegal bozo. but for us who didn;t vote for him we do not desrve to lose our country – and the 535 friggin bozo creeps need all to be arrested indicted tried and convicted and deported along with the illegal in the oval office and every signel one of his illegal friggin federal felon mexicans and muslims -right back to kenya which he just gave a large sum of money to this week. -to his uncle ‘s regime -muslim radicals.
Americans were promised Hope & Change. Obama and his friends got the hope and we got the change .
We got a new president who never did anything worthwhile with his life , lied thru his teeth and spent a million dollars hiding his past using our laws against us. We have a Congress that lets him get away with everything . Everyone in the U.S. knows he is a Kenyon muslim who.has broken our laws and will vote him in again to finish the job of bringing the U.S. to its knees. Our young people have been brainwashed in collage by radical hippie professors who were the 60′s radicals . The blacks vote color 1st with no reguard for this country . Our Congress just lets him get away passing executive rules. The Jewish vote for him because they think he is a liberal and will protect Israel but he will allow the muslims to destroy their fathers country. The blood of all Israellis will be on them . Woman , especially the young , think he’s cute and believe a black man in the White House is a reward for them being treated badly by whites when it was Republicans and Pres. Lincoln who freed them with ZERO democrat votes.
We have Ron Paul worshippers who say they wont vote for anyone but him and call for a third party when it will only re-elect Obama .I don’t like Romney that much but the few at the top keep giving us candidates like Mc Cain ,a RINO and Romney. They take turns.
If you think things are bad now ; Wait until this fraud is re-elected.You aint seen nothing yet.America is finished.