How bankruptcy can lead to debt resolution
Many people who file for bankruptcy(or who simply contemplate bankruptcy), feel some form of guilt. For some, it’s mild. For others, it’s a full-blown crisis of conscience. But is it normal to feel guilty about bankruptcy? And is there something wrong with those who don’t feel at least a bit guilty about it?
File for Bankruptcy Only if You Truly Need To
Maybe it’s obvious, but you should only file for bankruptcy if you really need to. If you have carefully weighed the options and feel that you have no other choice but to file, then you shouldn’t feel guilty about making a decision out of pure, economic necessity. It’s not as though you harbor ill will toward your creditors or you planned to file for bankruptcy when you originally incurred your debts. Rather, circumstances led you to this, and now bankruptcy is the only realistic option.
When Does it Make Sense to File for Bankruptcy?
You should only file once you have educated yourself about bankruptcy and all of the alternatives to be sure you are not rushing into a decision about a significant life event. Other options such as negotiating with creditors, or working overtime for a while, might be a realistic alternative to bankruptcy.
Once you have considered all of your options, it will be useful to discuss your situation with a bankruptcy attorney. He or she will likely give you a free consultation. When it’s over, you will know what filing for bankruptcy involves, and how much it will cost.
If you have done your homework before filing, then there is no need to feel guilty about your decision.
What if It Still Doesn’t Feel Right?
Once you have educated yourself about bankruptcy and talked to an attorney, you might be one of the few who still have reservations about filing. If this is you, don’t be afraid to discuss alternatives with your bankruptcy attorney. He may be able to negotiate with your creditors and have you pay off your debt for only pennies on the dollar. Ultimately, this will typically cost much more than filing for bankruptcy. However, if you truly feel that you can’t in good conscience file for bankruptcy, this is a useful alternative
A Matter of Perspective
Maybe you have never looked at the big picture regarding your financial situation. Keep in mind that every case is different, but have you considered that the interest rates on things like credit cards and payday loans are extremely high, to the point of usury? Have you considered that you have probably already paid off your original credit card balances and then some? What’s left is the result of extreme interest rates and exorbitant fees and penalties.
At least in some cases, it would be hard to feel all that guilty about not fully paying your creditors. It’s not a level playing field to begin with. When is the last time a credit card company went out of business anyway?
Not every creditor falls into this category. For example, your beloved dentist might be one of your creditors. When you file, you will be wiping out your debt to him or her. This might make many of you feel at least a little guilty. After all, he or she is probably a small business owner and somebody you have known personally for years. If you owe money to these types of creditors and feel that you cannot file for bankruptcy because of them, you can always choose to pay them what they are owed once your bankruptcy is over.