Why You Should Not Be Ashamed If You Have To File Bankruptcy

Everybody is struggling. We are all exasperated with endless debt issues. Debt is difficult to handle and even more stressful are the problems that typically complement the financial suffering. It’s like the “domino effect.” If we have lost our jobs, then everything is affected, we panic and become desperate, and soon we see our savings dwindle. We have been tempted to rob our 401K, but we know better. Most likely, we have already second mortgages on our home and borrowed money from our family. We can’t stop it; we are going further into debt.

We have done everything we can think of: cut up our credit cards, scaled down our groceries, stopped eating out and taking our family to movies. We have cut our budget to the core; we don’t know what to do next. Bankruptcy seems as the last resort, but we're devastated and scared; we feel ashamed and guilty, but we shouldn’t be because filing for bankruptcy can actually improve our financial situation. As a bankruptcy attorney, I hope that articles like this one can help remove the stigma on the proceedings.

In the past bankruptcy has had a bad taste for most of us; but today the old stigma attached to bankruptcy is dissolving as everyone is reaching out to catch the life preserver before drowning. If anything the recession has taught us is that if big corporations, banks, and businesses can go bankrupt, anybody can. Another thing we've learned is that it is not necessarily our fault.

We may have had a pre-existing illness that disqualifies from getting medical insurance. We may be victims of the financial bubble, created by a questionable real estate market, selling mortgages for overpriced homes with nothing down and interest only payments. In times when consumer debt is at an all time high, overwhelming debt can challenge the affluent.

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* Fresno Bankruptcy Lawyers

Rick D. Banks, Attorney at Law
776 E. Shaw Ave., Suite 206
Fresno, CA 93710
(559) 222-4831