Wednesday, April 13, 2011

Am I a failure because I filed for bankruptcy protection?

Will people think poorly of me because I did so?  A question that often bubbles to the surface in client meetings, even if never asked, it is there.

Inflation, rising property taxes, trying to help the kids, well you know what's next - use the credit cards to make ends meet.  Then there are the school bills, kid's activities, medical bills, and you have run out of money.  Retirement is no longer the "golden years" because social security payments just don't cover the bills.

There are a lot of reasons people need protection under the bankruptcy code, one of the most important being people just do not want to lose their home and they don't have to, because bankruptcy gives them a way of staying in their home and catching up on past due mortgage payments, while ridding themselves of credit card debt.  Bankruptcy, because of the "exemptions", (please read my blog article on exemptions) allows you to keep a reasonable level of assets, which in most homeowner’s cases is all of the assets they have.

When you decide to address your difficult financial position, you succeed.  The solution may be a credit consolidation loan, or it may be a loan modification program with the lender who holds your home mortgage.  You may use Chapter 13 of the bankruptcy code to catch up on your overdue car and home loan payments.  In any event, when you face the problem and decide to find a solution, you are never a failure.  Sometimes, bankruptcy is simply the answer.

You have decided that you will control the outcome of a difficult situation, rather than letting it control you.


6 comments:

  1. Excellent points here about the action of filing for bankruptcy being a protective one. It’s never easy having to admit financial problems, but if they remain untended, then they will remain problems. Filing for bankruptcy is a temporary solution, and the important thing is being able to rise up after having gone through it.

    Lance Simonetti

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  2. I agree! The only way to escape your problem is to solve it. What’s even better is that, filing for bankruptcy is a great opportunity to start fresh and rebuild your financial life, with more success, since you already know what not to do.

    Alana Elderkin

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  3. You are totally right there, Alana. Filing for bankruptcy can be the start of a new and better beginning for a person. It is when you have overcome trying times that you may use what you’ve learned from the past. You just have to look at filing for bankruptcy with optimism, because if you don’t, you may end up trapped in frustration and regrets.

    Tracy Pierre

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  4. You are totally right there, Alana. Filing for bankruptcy can be the start of a new and better beginning for a person. It is when you have overcome trying times that you may use what you’ve learned from the past. You just have to look at filing for bankruptcy with optimism, because if you don’t, you may end up trapped in frustration and regrets.

    Tracy Pierre

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  5. When you file for bankruptcy, it doesn’t mean leaving the playing field empty handed. Of course, there are exemptions. There is what we call “bankruptcy protection” or “financial reorganization” to help you on this matter. It will protect you from selling off some of your assets.

    -.Louisa Matsuura

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  6. “Am I a failure because I filed for bankruptcy protection?” –You’re totally not a failure. It’s just that you came to the point where you can’t handle the situation anymore, and the only best solution you have in mind is filing for bankruptcy protection. Bankruptcy protection is a way of making those collectors stop harassing you.

    >Cade Culpepper

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