On Friday August, 6 2011 S&P lowered the US government’s credit rating to a AA+.  S&P noted that they have been contemplating this move for some time and finally made the decision primarily on political grounds.  It looks bad when our government has such a hard time managing its budget, or agreeing on a budget.  In any event, now there is more pressure on the government to deal with this debt.  For that reason expect either a raise in taxes or a cut in government spending.  This may be apparent in government subsidized programs that may no longer be running or will be drastically cut back.

How is this related to bankruptcy?

Essentially, this is what happens to so many New Yorkers who are overwhelmed in debt and have no way out.  The US government cannot just file bankruptcy and get rid of the debt but you can.  If you would like a free consultation please contact my office at 212-244-2882.

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