Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt. Once it takes effect in October, 2005, the law will make it harder for those with problem debt to have their debt wiped away by the courts. Most will have to agree to a five-year repayment plan. In passing this new law, members of Congress suggested that our bankruptcy courts are filled with cases involving not ordinary citizens, but with reckless gamblers, shoppers, and drug abusers. Is that really the case?

One would think, given the accusations, that the highest bankruptcy rate in the Untied States would be in place where such vices were common, such as California, New York or even Nevada. If problem gambling is thought to be the cause of so much bankruptcy, then one might assume that Las Vegas would be the bankruptcy capital of the world. How odd it is, then, to discover that Utah, one of only two states that prohibits gambling completely, has the highest per capita incidence of bankruptcy filings in the United States. Utah? How can that be?

Utah has a number of aspects that, taken on their own, don't suggest that bankruptcy would be a problem. Added together, however, these things create a recipe for disaster:

  • Utah has the nation's highest birthrate. Seventy percent of the citizens of Utah are members of the Church of Jesus Christ of Latter-Day Saints, and members are encouraged to have large families. It costs more to feed, clothe and house a large family than a small one.

  • Utah has more families with only one wager earner. Large families mean more stay-at-home moms, so a lot of families must get by on a single paycheck.

  • Utah's wages are lower than average. Many high tech companies have relocated to Utah in recent years, but the "high tech" jobs they provide are often telephone customer service jobs, which typically pay $8-10 per hour.

  • Members of the LDS Church are expected to tithe 10% of their income to the Church.

  • While Utah's home prices are not among the highest nationally, they are fairly high when compared to the average wage within the state.

    • The combination of large families, fewer workers per family, church donations and low wages have contributed to an economic environment that makes it very hard for many Utahns to stay afloat financially. This is in direct contrast with the arguments put forth by Congress when the new bankruptcy law was proposed, which suggested that most people filing for bankruptcy are simply irresponsible. For many hard-working people in Utah, the new law will make it harder than ever to make ends meet.

    ©Copyright 2005 by Retro Marketing.

    Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.

    In The News:

    pen paper and inkwell


    cat break through


    Eliminating Credit Card Debt

    The overwhelming task of eliminating your debts can often seem... Read More

    Deal with All Your Debts with Care!

    Lots of people take a large ammount of loans and... Read More

    A Debt Elimination Process Must Be Initiated From You.

    The first and maybe most important step in a debt... Read More

    Credit Counseling or Bankruptcy: Which is Best for You?

    People often get to a place where they simply can't... Read More

    IVA Advice

    An IVA (individual voluntary arrangement) is an alternative to bankruptcy... Read More

    Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

    Do You Need to Join a CCCS - Consumer Credit... Read More

    Your Ticket Out of Debt Relief

    If you are in debt over your head and wondering... Read More

    Help for the Single Mother with Managing Credit and Debt

    Today's consumers benefit drastically from the usefulness of credit. Credit... Read More

    Taking The Plunge Into Bankruptcy

    Bankruptcy is one of the most difficult things a person... Read More

    Do It Yourself Debt Relief

    With mounting bills and unforeseen hardships, you may be considering... Read More

    Debt Reduction, a Necessary Endeavour

    Massive debt is something many Americans face. Debt reduction is... Read More

    Questions to Ask a Credit Counseling Service about Debt Relief

    Debt relief is a topic on a lot of consumers'... Read More

    Debt Collectors: Men or Mice?

    Who are these people anyway? They viciously harass you and... Read More

    Turning Bad Debts into Good Debts through Investing Fundamentals

    If you've ever earned enough money to put some aside,... Read More

    Bankruptcy 101

    Bankruptcy still remains a mystery in the eyes of many... Read More

    How to Deal with Bill Collectors

    So you've screwed up. You're drowning in debt. Maybe the... Read More

    Debt Consolidation and Personal Finances: Learn the Truth!

    An inability to manage credit, growing debt and bankruptcy are... Read More

    Debt Elimination 1

    If you have multiple debts, you may well be wishing... Read More

    Debt Relief with this Simple Formula

    Is there a way to get out of debt without... Read More

    The 5 Secrets to Getting Out of Debt Fast

    As they stare down at a teetering pile of bills,... Read More

    Debt Validation: Do you have to pay ?

    It happens all the time. Debt collectors try to collect... Read More

    The Road to Debt Relief

    Living with debt is not something someone hopes for, but... Read More

    New Bankruptcy Law ? Targeting the Wrong People?

    Last April, President Bush enthusiastically signed into law the oddly-named... Read More

    Life After Bankruptcy

    Bankruptcy and Credit - What Happens After Your Debts Are... Read More

    Craving For Financial Freedom

    Have you ever felt trapped in a Rat Race and... Read More

    Bankruptcy: Who is to Blame?

    If you are considering bankruptcy as a solution to your... Read More

    Debt Elimination

    If you're reading this article right now I'm sure that... Read More

    Bankruptcy Your Best Bet?

    Filing bankruptcy is a common practice among the U.S. Over... Read More

    Hide That Car! Fighting the Repo Man

    Vehicle repossession may appear justified in circumstances where a person... Read More

    Is My Credit Card Debt A Problem?

    For most Americans, credit card debt is a dangerous and... Read More

    What You Should Know About Bankruptcy

    Filing bankruptcy is not only a last resort legal action;... Read More

    New Bankruptcy Law Will Not Protect You from Identity Theft

    Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

    Help to Get Out of Debt

    Debt Help is the stepping stone to debt elimination and... Read More