Utah, the Nation's Bankruptcy Capital

"body">percent of the citizens of Utah are members of the
Congress recently passed the Bankruptcy AbuseChurch of Jesus Christ of Latter-Day Saints, and
Prevention and Consumer Protection Act, designed tomembers are encouraged to have large families. It
minimize frivolous bankruptcy filings and to requirecosts more to feed, clothe and house a large family
debtors to repay some of their debt. Once it takesthan a small one.
effect in October, 2005, the law will make it harderUtah has more families with only one wager earner.
for those with problem debt to have their debtLarge families mean more stay-at-home moms, so a
wiped away by the courts. Most will have to agreelot of families must get by on a single paycheck.
to a five-year repayment plan. In passing this newUtah's wages are lower than average. Many high tech
law, members of Congress suggested that ourcompanies have relocated to Utah in recent years,
bankruptcy courts are filled with cases involving notbut the "high tech" jobs they provide are often
ordinary citizens, but with reckless gamblers,telephone customer service jobs, which typically pay
shoppers, and drug abusers. Is that really the case?$8-10 per hour.
One would think, given the accusations, that theMembers of the LDS Church are expected to tithe
highest bankruptcy rate in the Untied States would10% of their income to the Church.
be in place where such vices were common, such asWhile Utah's home prices are not among the highest
California, New York or even Nevada. If problemnationally, they are fairly high when compared to the
gambling is thought to be the cause of so muchaverage wage within the state.
bankruptcy, then one might assume that Las VegasThe combination of large families, fewer workers per
would be the bankruptcy capital of the world. Howfamily, church donations and low wages have
odd it is, then, to discover that Utah, one of onlycontributed to an economic environment that makes
two states that prohibits gambling completely, hasit very hard for many Utahns to stay afloat
the highest per capita incidence of bankruptcy filingsfinancially. This is in direct contrast with the
in the United States. Utah? How can that be?Utaharguments put forth by Congress when the new
has a number of aspects that, taken on their own,bankruptcy law was proposed, which suggested that
don't suggest that bankruptcy would be a problem.most people filing for bankruptcy are simply
Added together, however, these things create airresponsible. For many hard-working people in Utah,
recipe for disaster:the new law will make it harder than ever to make
Utah has the nation's highest birthrate. Seventyends meet.