Allowing your emotions to keep you from filing bankruptcy

Ask any bankruptcy attorney and they will tell you that the number one reason most people avoid filing for bankruptcy is because of their emotions. When people have financial difficulties, they get very stressed and allow their emotions to take over. Right now, your decision-making skills have dwindled to practically nothing. They can go and consult with a bankruptcy attorney and be told they need to file bankruptcy, only to leave the office and decide against it.

With the economy in the tank, many Americans today are facing financial difficulties. With this comes the emotional decision of whether or not to use bankruptcy to eliminate this debt. While in reality these individuals should make rational decisions and not depend on emotions, they base their decisions on their feelings. There are three basic things that come into play when someone makes the decision to file for bankruptcy or not. Everyone knows the problems that arise from fear, pride, and stress.

Stress causes people to tune out and bury their heads in the sand, pretending there is no problem. People who are in financial difficulties who should file for bankruptcy, close and avoid contact with their creditors and even people who might be willing to help them out of their trouble. This disconnect seems to make the problem go away, at least temporarily. Some even use drugs or alcohol to mask the stress of the problem. While facing the problem head-on will make the pain go away much faster, many people simply cannot recognize it.

Another reason many avoid filing for bankruptcy is because of their pride. Their pride tells them that if they file for bankruptcy they are a failure. In reality, filing for bankruptcy doesn’t make anyone a failure, as you can see in American businesses. Many businesses use filing for bankruptcy as a way to liquidate balance sheets, renegotiate employment contracts, and get out of other bad financial decisions made. in the past. Many corporations leave bankruptcy filing more nimble and petty and on the way to being more profitable. In the business world, filing for bankruptcy makes sense and should be the same in our personal lives.

The last reason people try to avoid filing for bankruptcy is out of fear. With a bankruptcy filing comes the fear of the unknown. In the past, bankruptcy has had the stigma of a mark of shame, although this is not as true as it was in the past, the fear still lingers. Many bankruptcy attorneys believe that much of the stigma and fear that people have is due to the propaganda perpetuated by the credit industry. The credit industry would like consumers to believe that if they file for bankruptcy they will never get credit again. This is far from the truth, as many people shortly after filing for bankruptcy received credit offers in the mail. Over the years, creditors have stretched the truth just to get a little more money from the debtor.

People with financial problems must put their emotions aside and make a rational decision regarding the possibility of filing for bankruptcy. Taking the time to sit down and discuss this with a bankruptcy attorney will often ease their fears. A bankruptcy attorney will tell you that the only complaint people have about filing for bankruptcy is that they didn’t do it before.