Keeping the Emotions Out of a Bankruptcy Filing
When you are struggling to put your financial affairs in order, you need to focus on financial matters. Far too often, people will let emotions interfere with financial decisions — they won’t make efforts to contact creditors because of the shame or guilt they feel, or they won’t consider a potential bankruptcy filing because of the perception of failure or inadequacy that our culture attaches to a Chapter 7 or Chapter 13 petition.
It’s important to understand that bankruptcy is a financial decision — nothing more and nothing less. When you are considering filing for bankruptcy, your analysis should go no further than an assessment of whether it will help you resolve financial challenges and get a fresh start. Some of the key questions to ask include:
- Have my financial challenges interfered with my family life?
- What would my life be like if I did not have to pay my credit cards and medical bills?
- Does my monthly income exceed my monthly expenses?
- Am I using credit to pay for necessities or pay down existing loans?
Key Things to Remember When Emotions Come Into Play
It’s hard not to let your emotions interfere with the financial decisions related to a bankruptcy. Our culture likes to tell us that any financial challenge is a symptom of failure. But consider this: many of the people we think of as models of success — Walt Disney, Ulysses S. Grant, Abraham Lincoln, Donald Trump — all filed for bankruptcy protection at some point in their lives.
Furthermore, bankruptcy laws are not a modern response to an alleged culture of entitlement; there have been bankruptcy laws for centuries. The famous Dutch painter, Rembrandt, sought bankruptcy protection nearly 500 years ago.
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 856-759-6022 (toll free at 866-662-3191).