The other day I had a discussion with someone who is trying religiously to follow Dave Ramsey's advice regarding their personal finances. This person has a system that requires a great deal of discipline and personally seems to be working for them. When the issue of filing for Bankruptcy came up, it was like I had spewed the kind of verbal venom that is reserved for the playground bully.
It would appear that Mr. Ramsey relies on his personal experience and also some types of "studies" that show filing for Bankruptcy is one of the top 5 negative life events a person can experience. I will agree to this point, filing for Bankruptcy doesn't have the same sort of joy associated with your wedding day or getting that first great job, etc. But, I think that either from the point of marketing or a misguided belief, he misses the point. As it is the events leading up to a person needing to file Bankruptcy are often very negative, not the actual process of Bankruptcy. This can be anything from a job loss to an unexpected medical emergency that puts the person into a tough financial spot that they cannot get out of, even with self-discipline. Rebuilding credit after a Bankruptcy can take some time, but chances are if you are contemplating a Bankruptcy filing, your credit is already in really bad shape.
Often times people that I meet with talk about their "moral" obligation to pay back their debts. While this can seem honorable, I often remind people that you have a contractual obligation to pay back your debts, whether those be related to credit cards, mortgages, medical expenses, etc. You have a moral duty to feed your family and if your contractual obligations are making it impossible to meet your true moral obligations, then you are at a spot, where Bankruptcy can be helpful.
To be certain, the process can seem painful, but less painful then the repeat court appearances because you have fallen behind on your bills. Or, no more painful than repeat attempts by creditors attempting to contact you throughout the day. Everyone's situation is different and each situation needs to be evaluated on it's own to determine whether or not Bankruptcy would be a valid solution to your financial problems.
If you are experiencing financial difficulties and want to know more about Bankruptcy, contact my law office today for a Free Consultation.
