A Small Town Goes Bankrupt

By Law Office of Robert W. Kovacs, Jr.  Aug. 8, 2011 2:06p

Today, towns, counties and states in America are joining individuals throughout the country who are facing tough financial decisions in the face of shortfalls and losses in revenue. Due to the recession, financial mismanagement, the falling value of the dollar, and entitlements such as pension funds they can no longer afford, towns like Central Falls, in Rhode Island, are finding themselves in a position where they cannot pay their debt, just like millions of private individuals throughout the country.

In Central Falls, the debt was $80 million. Even after closing the public library and community center, cutting city services to an absolute minimum and raising taxes by 20%, the city could not pay its bills. The mayor was let go and, for the last year, state receivers tried to work out a way to keep the city afloat. They met with failure and Central Falls was forced into bankruptcy.

Sound familiar? In today's tough times, everyone is feeling the pinch. Foreclosures are at an all-time high. The recession has hit many states very hard, leaving millions without jobs or with reduced wages. Add to this the loss of value in the real estate market, leaving many homeowners owing more on their mortgages than their properties are worth, and the situation is even gloomier.

Most individuals just like the town of Central Falls, work hard to avoid bankruptcy. They are often generally beset by unfortunate events which put them into overwhelming debt, such as job losses, reduced wages, illnesses, injuries, divorces, loss of investment income, or other financial problems. They may also suffer from financial mismanagement of consumer debt, using credit cards to fall back on when monthly revenue cannot make ends meet, which results in deeper debt.

Bankruptcy in Worcester: A Legal Solution

Most people think of bankruptcy as a sign of failure or humiliation. Yet federal law has set up standardized bankruptcy procedures for anyone who is faced with a hopeless situation of overwhelming debt. If you cannot make ends meet, cannot pay your bills, and are being hounded by creditors, bankruptcy exists as a legal solution designed for you, the honest debtor, to give you a fresh start.

Because of the complexity of bankruptcy laws, it is best that you work with a Worcester bankruptcy lawyer who can review your situation, advise you on what needs to be done, and navigate you through the bankruptcy process smoothly and efficiently. That is what the Law Office of Robert W. Kovacs, Jr. is all about. Dealing exclusively with bankruptcy in all its forms, details, and nuances, this is a bankruptcy law firm that will walk you through the steps, using their extensive experience and knowledge, so that you can come out the other side with a clean slate.

To find out more about bankruptcy,contact a Worcester bankruptcy attorney at Law Office of Robert W. Kovacs, Jr. for a free consultation about your financial situation today.

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