When Pride Prevents a Person From Filing for Bankruptcy

Pride — One of the Biggest Stumbling Blocks to Exercising Your Rights in Bankruptcy

In our wired and connected world, there’s a lot of hot air that makes its way around, talking about “high rates of bankruptcy” and implying that bankruptcy is simply a sign of personal failure. Unfortunately, most of the people making these judgments have never experienced the hardships that lead people to file for bankruptcy. Statistics show that the vast majority of bankruptcy petitions follow the loss of a job, a divorce or a serious injury or illness. And the critics forget that some of the most successful people our country has ever seen — Henry Ford, Donald Trump, Mark Twain, Abraham Lincoln and Ulysses Grant — all sought protection in bankruptcy.

The unfortunate consequence of the inaccurate and unnecessary criticisms of those who seek protection in bankruptcy is that, as a result, many who could benefit immensely from a bankruptcy filing fail to do so out of a distorted sense of personal pride. But the decision to file for bankruptcy ought to be a business decision. You should consider your personal finances from a business perspective and, if the best business decision is to start over, you should use the bankruptcy laws to do just that. Pride won’t alleviate your stress and won’t help you put a stop to the endless calls and letters from creditors and collection agencies.

It’s also important to remember that the founding fathers believed in the concept of bankruptcy — not as a punishment, but as a right. They believed in it so much that they included a provision in the U.S. Constitution requiring the federal government to enact uniform laws on bankruptcy throughout the United States.

Contact John Hargrave and Associates

We have provided comprehensive counsel to individuals in and around Barrington, New Jersey, since 1977. To schedule a free initial consultation, contact our office by e-mail or call us at 856-547-6500.

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