Filing for Bankruptcy? Combat Stress With Facts

One reason many people in financial trouble try to avoid filing for bankruptcy like the plague is because their lack of knowledge. In the recent years, the US has seen a large number of Americans filing bankruptcy to eliminate debts, stop foreclosure and just get back on their feet. Unemployment now continues to stand at around 8% and it doesn't look like it is getting much better anytime soon. Many people are kicking the can down the road as they continue to borrow as much money as their creditors will allow them. A large group of the middle class is now borrowing to pay debts that they will never be able to pay back. The average debt to income ratio of the middle class is now 154%. At some point in time, the interest alone will force them into bankruptcy filing. They are doing nothing more than robbing Peter to pay Paul to continue their unsustainable lifestyle. Not only are the citizens of the US playing with fire, the government is running a $ 1 trillion deficit and is poised to surpass $ 17 trillion in debt in the next year. Ronald Reagan once compared to the government to someone spending money like a drunken sailor, but the only difference was at least the sailor was spending his own money.

For someone that is living this lifestyle and stressed out about making the decision to file bankruptcy, they should combat their fears and stress with facts about how their life will be after filing bankruptcy. Most people can't see themselves living without plastic and also believe that a bankruptcy filing will take that luxury away from them. Although creditors would like debtors to believe that they will no longer have access to the golden goose if they file bankruptcy, they are opportunists and see employed individuals emerging from bankruptcy being virtually debt-free. Typically, the same creditor might hold a grudge against that individual, but there are thousands that will be willing to take a chance.

Another thing that stresses people out when considering filing for bankruptcy is the possibility of others finding out. Pride is a powerful emotion that will make people do foolish things even not in their best interest. Because of pride many people continue throwing good money into the debt abyss knowing well that the debts will never be paid off. It's common for a bankruptcy attorney to hear a client speak of how they wished they did not throw all that money away and used bankruptcy much sooner. Hindsight is always 2020 and if they had only educated themselves with facts and not rumors they still would have all that money they threw away. First those that are still worried about someone finding out, they really have nothing to worry about unless that person is a creditor of theirs. When filing for bankruptcy is required for an individual to list all their creditors, even family members and friends if applicable. Even though it is public record, unless the individual tells someone, most likely no one will know. In the big scheme of things, it really does not matter what others think when it comes to protecting your family's financial future.

The endgame is creditors will no longer be able to contact the individual giving the person peace of mind and allow them to once again answer their phone. At the end of the bankruptcy filing, many people exit being virtually debt-free and get a fresh start while trying to avoid making the mistakes of the past.

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