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Should you feel ashamed to file bankruptcy: Absolutely not

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By: Good Nelly
on 4th Jun,2014

A renowned bankruptcy lawyer states that his clients are apprehensive to fix an appointment with him. He is not a rude person.
Should you feel ashamed to file bankruptcy: Absolutely not

A renowned bankruptcy lawyer states that his clients are apprehensive to fix an appointment with him. He is not a rude person. Rather, he makes an effort to be polite with his clients. He tries his best to make his clients comfortable and listen to their problems sincerely. This attorney does not even charge an exorbitant consultation fee unlike others. Then why do people hesitate to meet him? He is not a monster after all.

The main reason why people hesitate to call and meet the bankruptcy lawyers is something else. Most of the people who approach the bankruptcy lawyers are struggling debtors. They have tried all the options to get out of debt, but failed. It is this failure that makes them apprehensive to schedule a meeting with the bankruptcy lawyers and submit  the bankruptcy petition.

Debtors feel ashamed to file bankruptcy. Debtors feel that they have failed to fulfill their financial obligations. They have not been able to take care of their financial responsibility, which most of their friends are easily able to do. They have let down their family by not being able to save their shelter from foreclosure. Debtors feel that it is because of them that the family members have to face the disgrace of lawsuits.

Debtors are bound to feel depressed while filing bankruptcy. There is no point in refusing to accept this fact. It is not an easy thing to take the final jump and complete the bankruptcy process. They think that their life is over post bankruptcy. The friends, colleagues, neighbors will turn their faces and poke fun at them. Lenders/creditors will not give a loan to them, nor will they be able to purchase a house in future. In short, life will not be same after bankruptcy.  

Creditors have also played a major role in making the people feel ashamed to file bankruptcy. They keep saying that it is a terrible thing to file bankruptcy. However, when the debtors try to negotiate a repayment plan with them, most of the creditors are not interested to work out a solution. They keep increasing the interest rates and expect people to pay them by any means. The debt collectors tell lies to the people. People are told that they should feel ashamed even to think about filing bankruptcy. 

Life will definitely change after filing bankruptcy. However, this is a wrong notion that friends and family members will look down upon the people after filing bankruptcy. If the people can manage their finances well, then they will be able to get loans and buy homes within a few years of filing bankruptcy. As far as the society is concerned, no body looks down upon the people filing bankruptcy anymore.

Several renowned celebrities such as Michael Jackson, Tom Petty, Larry King, Don Johnson, etc. have filed bankruptcy in the past. People don't look down upon them just because they have filed bankruptcy. Bankruptcy does not make a person bad or good suddenly. It is not a crime but a hard reality which everyone should accept gracefully.

Bankruptcy is a reality. It is better to pay off the debts through legal intervention rather than losing each and every financial asset to the creditors/collection agencies. In a country where the consumer debt is hovering around $2.43 trillion (as per the latest report of Federal Reserve), it is nothing unusual that more and more people will file bankruptcy. 
Bankruptcy allows the distressed debtors to get a grip on their finances. So, if you are not able to tackle your bills even after getting help from the debt consultants, then don't hesitate to file bankruptcy. Here are some reasons why you should go ahead with bankruptcy:

1. Stress-free: You can't deal with the stress of dealing with the creditors/collection agencies anymore. It is taking a toll on your health.

2. No tax implications: You don't have to pay any tax after your debts are discharged through bankruptcy. You would have to pay tax after settling debts out of court.  

3. Marriage: Money matters do make a negative impact on martial life. You can prevent your marital life from getting adversely affected by killing your debts through bankruptcy.

4. Anonymity: Thousands of people file bankruptcy every year. You'll be just one of them. Your creditors will obviously know that you have filed bankruptcy. However, your employer, friends, neighbors, etc. are less likely to know about it. The bankruptcy trustee won't inform them. Only a handful of outlets publish details of the people filing bankruptcy nowadays.

5. Liens: The present laws and low property values may permit you strip off the liens on your house. If the housing market improves and the property value increases, then you may not be able to take advantage of this opportunity anymore.

6. Credit score: Your credit score will not increase till the debts are eliminated. Delinquent debts on your credit report will keep on hurting your credit score. 

Finally, if you are drowned in debt are not able to get out of it, then don't feel shy to consult a bankruptcy attorney. If the attorney feels that bankruptcy is the only solution to your debt problems, then go ahead and submit the petition to the court.

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