Natural Hazard Increased Bankruptcy Cases in Los Angeles

  • Bankrupt Lady

Filing Bankruptcy in case of Natural Hazard in Los Angeles

Natural calamities cause a huge impact on every individual’s life in every possible aspect. It takes several years for a person to overcome the losses caused by a natural disaster and to get back to a normal life. It causes great mental as well as financial peril on everyone’s life. Many people find it hard to overcome the financial burden due to pre-disaster debts accompanied by post-disaster losses. Hence there is a sudden boom in the number of people filing for bankruptcies immediately after a natural calamity. In recent years Los Angeles and Dallas, TX have seen many natural disasters which have toppled the life in these areas. Hence there is a dramatic rise in bankruptcy cases too. If you are also looking forward to filling bankruptcy then you must visit Recovery Law Group or dial 888-297-6203 for the best assistance.

How natural disaster does cause an increase in bankruptcy cases?

It is a common trend that the number of bankruptcy cases increases after the occurrence of a natural disaster in an area. However, this rise may not be immediate because just after a natural calamity, the first priority of people is to get back to normal living condition rather than repayment of loans and debts.

Another reason behind the delay in filing bankruptcy is the migration of people to new places in search of job and livelihood. Hence they might file for bankruptcy from their new place after they settle down there. Also, in case of a natural disaster people tend more towards taking debts rather than repaying their previous debts. This is so because they, first of all, want to rebuild their shelter and start a source of income for themselves which requires money. However, this money may sometimes cross their limit to repay the debt and hence lead them to the situation of being bankrupt.

Hence in all, there is some lapse needed to properly evaluate the effect of natural calamities on the bankruptcy cases. This time can be about 2 to 4 years.

According to a study conducted by a professor named Robert Lawless of Nevada University, Las Vegas, it was observed that there was an increment of 50% in the bankruptcy cases after three years from the date of occurrence of a hurricane in the region under the study. Also, it was inferred that the cases of bankruptcy rouse more in areas with less worthy houses in comparison to the areas with high-end houses.

It is better to be prepared rather than losing in Los Angeles:

Unlike other cities of Southern America, Los Angeles stands third in the vulnerability to a home loss in case of natural disaster hence it is very important for its people to be prepared beforehand for any such calamity. These disasters may be hail, earthquake, tornadoes, floods, etc.

According to the past trends, it is seen that in hurricane and flood-prone areas, there is a drop in housing rates which is not the case with earthquake-prone regions. This is so because the earthquake is much common in these areas and hence people are much more used to face it as compared to other disasters. Thus, people in such places hardly take up insurance against earthquake which can be termed as just a vague kind of optimism. This practice can be bothersome in areas which show a tendency of being hit by an earthquake of magnitude above 6.5.

Hence, it is always recommended to take earthquake insurance if you live in areas vulnerable to it irrespective of your capabilities to face the aftermath of an earthquake. This preventive measure must be taken for every kind of natural disaster. It is good to be optimistic about life but it is better to be preventive so that if an unexpected calamity occurs you can get back to a normal life without facing much loss.

How to prevent yourself from financial peril following a natural disaster?

As explained above, it is extremely important to beware of any natural disaster and be prepared to face the repercussions of it beforehand. For this to happen, first of all, you must plan and put a small part of your regular income into some kind of emergency fund or insurance scheme. Such schemes might include natural disaster as well as other emergency situations. Thus you must hold an emergency fund always. You can also opt for any natural disaster-oriented insurance scheme if you want to. For this, you can consult a good insurance agent who would be able to guide you through the best possible insurance schemes for you.

In case of occurrence of any natural calamity, there are certain things that you need to be aware of. Three of the most important things that you need to keep in mind are enlisted below:

  1. If you have opted for an insurance scheme but the insurance agency denies the payment of insurance money that was promised, then you must not surrender. Instead, you must fight for your right and get the promised amount of money as per the insurance scheme that you signed.
  2. You can also go through a financial assistance program run by various government firms to help its public to plan their finances in case of a natural disaster. However, you might have to work hard a bit to know about them and enroll in them.
  3. Another option to get back to normal life could be bank loans for disaster-hit areas that help people to rebuild their homes and provide finances to them for survival purposes.

And still, if you feel like filing for bankruptcy then you must consult a good bankruptcy attorney who will guide you through the complete filing process and will also recommend you the best possible way to get through the financial peril after a natural disaster. If you live in Los Angeles, then you can visit Recovery Law Group or better guidance on how to file bankruptcy.