Is The American Dream Slipping Away For Middle Class Families?
By Peter Orville, Attorney at Law on May 29, 2008 in Chapter 13 Bankruptcy, General Bankruptcy Information
The American Dream is in fact slipping away for many middle class families according to the President of the National Association of Chapter Thirteen Trustees (NACTT), Robin Weiner. Hard work, she says, no longer guarantees the ability to purchase a home. “The price of health care and education is spiraling out of control. Many families are barely able to keep up with the basic cost of commuting to work, child-care, food, clothing and utilities.”
Founded in 1965, the NACTT is an organization for the over 200 Chapter 13 standing trustees from all 50 states and Puerto Rico, as well as bankruptcy judges, debtor and creditor attorneys and other professionals. As president of the organization and a Chapter 13 trustee herself, Ms. Weiner has a unique perspective on what today’s uncertain economy has on Chapter 13 cases.
According to Ms. Weiner, there has been a notable change in the type of person who files a Chapter 13. Previously, the typical Chapter 13 debtor was a middle-class person or family who worked for the school system, police department and postal service. Or they were nurses and truck drivers. On average, they lived in modest homes, drove older motor vehicles and their kids went to public school. These Chapter 13 debtors had used their credit cards to “bridge the gap between their income and their overhead”. This left little room for a medical emergency, loss of job or unexpected major repair.
Who are the new class of Chapter 13 debtors? See “Is the American Dream Slipping Away…Part 2″
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