U.S. Families Lose Approximately 40% of their Net Worth During the RecessionPosted by William on Jun 12, 2012 in Bankruptcy, Consumer Debt, Debt Collections Defense, News | 0 comments
During the 2007-2009 recession, many companies implemented massive layoffs, small businesses closed, and families were forced to find ways to save their homes. The housing market was crashing and families sought help from loan modification companies, many of which turned out to be nothing more than shell companies looking to scam people out of thousands of dollars. Many families tried to short sale their homes, but the short sale process was often long and tedious. As a result, many families ended up losing their homes to foreclosures. During this entire time, many families were living on less income (and sometimes even unemployment checks). As debt increased, bankruptcy filings increased as well.
If you are a homeowner in California or used to be a homeowner who recently short-sold or lost your home to foreclosure, then you are keenly aware of the amount of money you lost in the recent recession. You are also keenly aware of the amount of money you have not been able to make or even save for that matter, as jobs are still difficult to find and, even if you were saving your money, savings account interest rates are only a fraction of what they used to be.
If you are a Southern California native, the fact that families have lost both their jobs and their homes is not surprising. What may be surprising is just how much of each family’s net worth was lost in the recession.
Recent studies of the Great Recession of 2007 to 2009, as it is now referred to by many in the media, has caused families across the nation to lose approximately 40% of their wealth. The United States Federal Reserve published a report this past Monday stating that the median net worth of a U.S. family fell from $126,400 in 2007 to $77,300 in 2010.
The biggest shock came with regard to statistics pertaining only to the western states of California, Nevada, and Arizona. Prior to the recession, many families in Southern California held much of their net worth in their home. As a result of the recession, families in these states experienced the largest losses in their net worth. In fact, in these western states alone, families lost more than 55% of their net worth which dropped drastically from $164,100 to $73,400.
If you or your loved ones need assistance dealing with debt or are considering filing for bankruptcy, call an attorney at the Bailey Law Corporation for a free consultation today! We can help you assess all of your available options and ensure a brighter financial future for you and your family.