Is Bankruptcy Going to be the Furture of 2012?

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The Future of 2012 Financial Prediction

According to recent news reports, some speculators are predicting the future of 2012 is going to be the year of bankruptcy. The speculators are looking to pick up bankrupt businesses for pennies on the dollar.

American and European Debt Crisis

What is driving the saliva to flow in these scavengers is the shakiness of the United States debt crisis. Risky companies that were able to borrow money from investors these past several years at unusually low interest rates will most likely get cut off when the crisis kicks into full gear.

The United States is already 15 trillion dollars in debt, and currently, the income taken in by the United States in taxes will not even pay the interest on the debt crisis. These facts will most assuredly drive interest rates up in the near future.

What will kick the bankruptcies into full gear is having to refinance the stressed bonds and the stocks of buyout debt coming due in 2012. Combine these facts with the previous three years of investments showing risk fatigue, and you have a recipe for defaults to follow.

Three Industries Heavily Leveraged

Some experts are predicting that the gaming industry, entertainment industry, and the oil services industry will be the most affected by the debt crisis and rising interest rates because they have been heavily leveraged industries. Some experts have suggested as much as 25% of the gaming, entertainment, and oil service’s debt will be coming due in 2012. If they cannot restructure or refinance their stocks and bonds, the end result will be bankruptcy for many of them.

If what these economic experts are saying is true, look for an even more sluggish economy in the United States in the future of 2012, because the past few years the gaming, entertainment and oil service industries have been the backbone of any type of good news concerning employment and company profit. A rash of bankruptcies within theses industries in 2012 might have another enormous affect on the overall employment health within the United States.

Individual American Worker Depends on Healthy Industry

More downturns in the already existing sluggish economy and the future of 2012 certainly may be looked back on as the year of bankruptcy. As industry sectors in the United States thrive so does the individual workers who support the industries, but when the industries begin to struggle with such things as default and bankruptcy, unemployment is always a result. Unemployment is one of the largest contributing factors for individuals to file for bankruptcy.

What You May Have to if the Industry You Work for Defaults in 2012

If you are dependent on the gaming, entertainment, or oil services industries for employment, or if you are dependent on any other industry that is heavily leveraged, the future of 2012 might be a time you will have to face making financial decisions concerning bankruptcy.

If you lose your job and get caught up in bankruptcy, bankruptcy laws can be very complicated. You will most likely need a bankruptcy lawyer to help answer any questions you might have on bankruptcy laws and how they apply in your particular situation. Contact a bankruptcy attorney in your area.

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