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What Is Really Forcing the Postal Service Into Bankruptcy?

On Behalf of | Nov 13, 2013 | Bankruptcy in the News

The Berkeley Post Office building dates back to 1914 and is beloved by many citizens, as evidenced by a “camp-out” objecting to the US Postal Service’s decision to sell it. The US Postal Service has a real estate portfolio worth $85 billion and it is looking to downsize. But what is the cause of the Postal Service’s financial woes? Many people are not aware that the Postal Accountability and Enhancement Act (PAEA) of 2006 is the cause of the USPS’s financial problems. This law requires the Postal Service to pre-fund 75 year’s worth of future health care benefits to retirees. This financial burden has not been placed on any other government entity. The Postal Service has also taken a hit due to the numerous electronic bill payment methods. People can save the cost of a stamp and the hassle of mailing their payments by simply logging into their computer to pay their bills online. Still, you would think that having the monopoly on the delivery of mail would be quite profitable. The truth is that its profitability is part of the problem – the private sector wants in on the action. FedEx and UPS have already taken a lot of business from the Postal Service when it comes to packages. Luckily, however, only the Postal Service is given the authority to deliver mail and until that changes, the Postal Service will live on. We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation.