Sacramento area residents who feel ashamed with the idea of filing for Chapter 7 or Chapter 13 bankruptcy need to understand that there should be no personal guilt or shame associated with this decision. The determination to file bankruptcy is an economic decision, period. There is no moral association attached to the concept of bankruptcy. In fact, bankruptcy principles have been in existence since the middle ages and are even included in the United States Constitution!
Sadly, creditors have worked very hard at shifting an economic question into a moral question in an effort to dissuade people from making this decision. They have attempted to embarrass or make those who find themselves in economic peril to feel guilty for having to file. What people fail to remember, however, is that creditors are voluntarily taking risks by extending credit. Having a debt discharged is part of the risk associated with doing business in the lending arena.
Lenders are sophisticated and completely aware that some of their customers will file for bankruptcy; in fact, it’s a part of their business model. This recognition should enable a person considering bankruptcy to focus on the economics of the decision rather than the morality that has been improperly associated with it.
Hundreds of thousands of people file bankruptcy every year. In fact many of them are even rich and famous. Few people are aware that people like Walt Disney, Henry Ford, Donald Trump, Abraham Lincoln, Mike Tyson, Burt Reynolds and hundreds of other celebrities and political figures and business magnates have used the bankruptcy code to get the fresh start that we are all entitled to as a matter of law.
If you or someone you know has considered chapter 7 or chapter 13 they should discuss their concerns with a qualified individual. As a Sacramento Bankruptcy Attorney, I have helped people resolve their financial problems over the last several years.