Ever since the housing market began its steady decline, other financial sectors have undoubtedly suffered along side to some degree. Corporate and business bankruptcy cases have emerged more frequently since the beginning of 2008. The stories cover businesses like Lines n Things, Wornick Co. and Alabama's Jefferson County among other US Cities.

The airline industry is once again making the news with several carriers increasingly showing risk of defaults and bankruptcy; even after major reorganizations under chapter 11 bankruptcy earlier in the decade. The looming issues, which have already caused labor cuts, are due to worsen as consumer demand continues to drop, the price of jet fuel sky rockets and the US economy increasingly moves towards a recession.

Bankruptcy cases in the first quarter of 2008 were nearly double what they were last year. This clearly shows the financial stress being felt across the US and the dire need for relief and government intervention. Recent efforts by Democrats to pass a bill that would adjust existing mortgage loan amounts to more accurately reflect current fair market value were rejected by Republicans and the banking sector due to the projected losses banks would have to take, leaving homeowners still waiting for a resolution to their ever increasing mortgage rates.

The mortgage crisis is one of the major reasons for the current state of the economy and to some extension the number of bankruptcy filings this year. Sub prime loan products, being the most likely cause of the crisis, were marketed aggressively during the Real Estate boom of the first half of the decade, these loans, which started with low teaser rates, have adjusted to unmanageable levels for borrowers who could only qualify for such products during this time.

While members of both parties debate at congress on which plan to implement to help homeowners in trouble, a coalition formed by several banks and mortgage lenders named "Hope Now" has taken initiatives for helping homeowners facing foreclosure by performing loan modifications on existing loans to make payments affordable again. It is reported that over half a million homeowners have already benefited from this, although the rate of defaulted loans and foreclosures is still out pacing these efforts.

Middle class consumers were the typical borrowers of sub prime loans during the boom, though recent news reports show that there are people who don't fit the usual profile in the same situation. Famed baseball star Jose Canseco, whose $2.5 million dollar home in Encino, California recently went under foreclosure. A news report in April of 2008 explained that Canseco was not necessarily struggling financially, but that perhaps the total mortgage leans on the home far exceeded the current value of the property, in which case he decided to simply walk away from it.

The retired baseball player was one of the first celebrities who admitted to losing a home to foreclosure, indicating that it was more than probable that at least one of the loans used to finance his home was in the sub prime category.

Several online news sources indicate that the opinions of many financial experts collectively predict bankruptcy cases to continue escalating through 2008 and 2009. The real estate market's free fall will not see the bottom for some time yet and further economic stress and recession-like state is to be expected. Meanwhile the discussions in Washington to rescue the economy have yet to find common ground as opposing parties continue to sharp shoot proposed plans that aim towards helping primarily homeowners facing foreclosure.

Adding to consumers' worries, gas prices are expected to continue rising throughout the summer, a factor that has contributed to the increase in prices in other necessary commodities like groceries and manufactured goods. This current inflation hike has also prompted government officials to take short-term measures. Homeowners already under stress from their rising mortgage rates can expect their chances of bankruptcy to hike up as well. The best solution for homeowners in this situation is to contact their lender and attempt to work a loan modification. Lenders are keen to these options today since defaults and foreclosures can be much more costly.

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