^[1]Not so long ago we had a middle-aged woman visit our office. Her husband recently lost his job and couldn’t find another. They were financially strapped. She was pondering the idea of going out and getting a second job herself so that they could pay their bills, or she wondered if there were another solution.

In talking to some of her friends bankruptcy was brought up as a possible solution but she couldn’t get past the moral or social stigma that it brought with it. They had always paid their bills on time before he was let go. They felt that they were a responsible couple who just were going through a tough time.

She showed up in our office with many concerns about filing a chapter 7 or chapter 13 bankruptcy. Would the records of the bankruptcy be easly accessed? Could this hurt them in finding future employment? What about the social implications? I told her that most employers wouldn’t even ask that kind of information from employment candidates. I answered all of her questions patiently and provided her the information she needed to make an informed decision. I told her about the many famous individuals through history that had filed bankruptcy, including Henry Ford, Donald Trump, Thomas Jefferson, and Walt Disney to name a few. Although she wasn’t ready just yet she was able to go home think things through and talk them over with her husband. Within a couple of days she called our office. She had talked it over with her husband and they were going to file. They had come to grips with the prospect of filing and were now free from fear or worry. They knew that this was going to be a new beginning for them, not a social disaster as they had first thought.

This story isn’t an isolated incident. We have many people who contact our offices and are very concerned about filing bankruptcy. They wonder if it’s morally right. They have always paid their debts and feel guilty to not repay their debtors. Sometimes bankruptcy can be a very emotional decision, that won’t go away. But through research and some conversation there can be clarity brought to the situation. So that an informed decision can be made. Bankruptcy is a tool designed to help people who may be in that tough situation. It can offer a fresh start for those that may be in some sort of financial hardship. Whether that is through credit card debt, medical bills, home foreclosure, etc.

 Yes credit counseling is another option that some may seek. But credit counseling could end up being more damaging to your credit. When you enter credit counseling you are probably already not able to make your monthly payments. With each month that goes by that you don’t make a payment your credit scores go down. Where if you file bankruptcy your debt may be discharged within four months allowing you a new start. With each client, I have found that once I am able to sit down and talk to them, addressing each issue and offering more information, they are able to move forward with a new, educated perspective. If a person meets the right requirements and has become educated about filing bankruptcy they can make an informed decision about it. Leaving the social stigmas behind and making a fresh start.

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