Election 2012:  Expect more bankruptcy filings as employers react to prospect of more regulation, higher taxes, inflation and Obamacare.  

As we approach the start of 2013, bankruptcy attorneys anticipate an avalanche of new bankruptcy filings as more people enter the sphere of unemployment, many for the first time in their lives. Although many large corporations may not actually lay off workers, they will, however reduce hours to avoid upcoming Obamacare rules and regulations for employers of more than 50 workers.   Reduced hours, of course, means less income.  More people will be unable to pay all of their bills. To add insult to injury, expect that utility and food costs will continue to rise as the regulatory aparatus stomps the landscape, virtually unchecked (currently none of the millions of provisions in the Code of Federal Regulations are subject to a sunset provision requiring Congressional review and renewal).  For the self-employed, expect healthcare costs to rise, especially for your private healthcare insurance policy.  Employers are also expected to require workers to contribute more to company plans.   Government workers, until now a protected class in the economic downturn of the past 4-5 years, will inevitably suffer the same reductions in hours, earnings, and benefits as the private sector.    The "fiscal cliff" that everyone on the news is obsessing about will cause an automatic increase in taxes for the middle class.  

Getting rid of the burden of consumer debt with a bankruptcy filing offers many the opportunity to take control of their financial lives, rather than being a victim of higher taxes and inflated prices on necessities.  Times are not going to get better for us in the middle class in the foreseeable future.  For many, the only option will be bankruptcy, and a paring away of the burden of credit card, medical and other unsecured debt.