Puerto Rico might still be in financial trouble as it is struggling to repay its debt. As a result, it recently obtained the help of a law firm to help rearrange its current liabilities.  Right now Puerto Rico’s debt is about $70 billion, in addition to interest as reported, by Bloomberg View in an April 9, 2014 article.

It is predicted that Puerto Rico will not be able to reduce or eliminate its debt since its economy is not doing well.  Many people are leaving Puerto Rico to come to the United States mainland. Furthermore, it is estimated that less than half of the population is employed in Puerto Rico. In addition, it is estimated that only half the population has completed high school while half of that amount has obtained a college education.

Puerto Rico has two options right now: (1) pay off its debt or (2) receive a bailout from the United States government. Right now the United States is trying to help Puerto Rico by partially bailing it out and by giving it about $2 billion  per year. Unfortunately, there is a large chance that the United States government will not be able to increase the bailout amount. As a result, Puerto Rico might have to default on its debt, since it can not repay it. Therefore, with the default looming, perhaps the legislature will try to establish or work out a plan with Puerto Rico.

Furthermore, Puerto Rico is unable to file for bankruptcy because it is a United States territory, and thus it is not eligible for bankruptcy provisions.

Whether you are in piles of debt or you are behind in your mortgages payments or you are facing foreclosure, bankruptcy may be an option to help you wipe away your debts. Jayson Lutzky offers free confidential, initial in office consultations for individuals and couples considering filing bankruptcy. To set up an appointment, call 718-514-6619. Saturday appointments are available. Visit www.MyNewYorkCityLawyer.com for more information.