• Home
  • Bankruptcy in Brief
  • ABC’s of Bankruptcy
  • Considering Bankruptcy
  • True Stories
  • Chapter 13
  • Blog
  • About
  • TOC

Northern California Bankruptcy Lawyer

On The Bankruptcy Soapbox

The Soap Box
  • How bankruptcy works
  • Mortgage Matters
  • Consumer Rights
  • Newsworthy
  • You & Your Lawyer
  • Small Business
  • Family Law

We Live In An Economic House Of Cards

By Cathy Moran

I’ve long said to bankruptcy clients that bankruptcy can’t fix an income problem, it can just ameliorate an outgo problem.

In the last round of frantic bankruptcy filings a decade ago, one symptom seemed to be that too many families in the Silicon Valley  couldn’t really afford to live a middle class life here.

They filled the gap between economic realities and their expectations with credit cards until the house of cards came tumbling down. 

In bankruptcy, I could provide the tourniquet that staunched the credit card outflow. But it seems the problem of struggling families isn’t just an outgo problem: it’s income based and it’s everywhere, not just California.

A United Way study shows 43% of American households can’t afford a bare bones budget.  That’s 51 million households that can’t afford the basics of food, rent, child care, transportation, health care and a cell phone.

Even when unemployment was low, the income generated falls short for a huge swath of our populace.  The people the United Way set out to study were those they dubbed ALICE:  Asset Limited, Income Constrained, Employed.

What they found calls out for national attention and an economic reordering that keeps all of our families self sufficient. The problem has been further exposed and exacerbated by COVID-19.

My skill-set in bankruptcy is no match for people on the edge of destitution. Only a national resolve to spread the blessings of liberty more equally will suffice.

More from the Soapbox

  • How You Can Collect From The Debt CollectorsHow You Can Collect From The Debt Collectors
  • California Homestead Exemption: The Truth Isn’t What You ThinkCalifornia Homestead Exemption: The Truth Isn’t What You Think
  • SuperLawyerSuperLawyer
  • Your Tax Refund In The Crosshairs In Debt Collecting SeasonYour Tax Refund In The Crosshairs In Debt Collecting Season
  • The Truth About Tax Liens After BankruptcyThe Truth About Tax Liens After Bankruptcy

Filed Under: Consumer Rights, Pondering Tagged With: 2018

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Coronavirus & Your Finances

About The Soapbox

You've arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said "try").

Here, I allow myself to tell stories and express strong opinions on how I think law should work for the consumer and small businesses when it comes to debt.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

Speak Fluent Bankruptcy: Guide To Essential Bankruptcy Terms

Bankruptcy has its own language.  If you are considering filing bankruptcy, it helps to know the language spoken there. Master just a couple of words and phrases, and input from a bankruptcy lawyer starts to make sense. So, in our continuing campaign for better understanding of bankruptcy, here's a dozen … Read more

More Posts from this Category

643 Bair Island Road
Suite 403
Redwood City, CA 94063
Phone: (650) 694-4700
Phone: (650) 368-4700

Categories

All content copyright © Moran Law Group. All rights reserved.