LEXINGTON, Kentucky, September 3, 2013 /PRNewswire/ --
PersonalLoansForBadCredit.net, the short term loan introduction site and comparison platform, has written and published a guide on how Chapter 9 bankruptcy can affect a city. The decision to produce the article was made in the aftermath of the City of Detroit's recent announcement of municipal chapter 9 bankruptcy filing. This particular kind of bankruptcy concerns cities and counties and refers to the relevant chapter of the U.S. Bankruptcy Code and the site notes that the occurrence of this form of financial hardship is increasingly common at the moment.
The site believes that cities and counties experiencing financial difficulties can pass the burden onto residents, thereby increasing the living expenses in order to recoup losses through more taxation. This can place more pressure on residents who may already be struggling to meet their bills and make the month. For those that live within payday loan friendly states, short term lending options may provide temporary respite when used responsibly.
A spokesperson for PersonalLoansForBadCredit.net made the announcement of the article's publication in the following statement that was released to the press:
"Chapter 9 bankruptcy is a very common problem in America today. Cities struggle as individuals struggle. With unemployment rife, there is less taxation revenue for municipal services and cities with hard circumstances find it harder to borrow money."
"We have revealed in our report that there have been 217 municipal bankruptcies since the enactment of the U.S. Bankruptcy Code. Within the year 2012 alone, there were 20 filings. It is important for consumers to be aware of what this could mean for them if their city falls into dire straits, as Detroit did recently. For those with municipal jobs, such as within the fire service, police or city administration, job loss or pay cuts can be a very real threat as services are reduced to their bare bones in order to save money and reorganize debt."
The article explains clearly the importance of Americans to be aware of the financial health of their city and maintain responsible, mindful and balanced borrowing habits in order to avoid being "blindsided" by increased taxes, job loss or the inability to make repayments.
To learn more about Chapter 9 bankruptcies, read the full article at: http://www.personalloansforbadcredit.net/faq/