Bankruptcy: Should You Be Embarrassed or Ashamed?

June 3, 2010 - PRLog -- I have met with a lot of debtors who are embarrassed about filing bankruptcy. They feel ashamed of having to filed bankruptcy and feel they are doing something wrong by not paying their debt. However, most debtors try to pay all their bills until the interest and late fees and overage fees are more then they are able to pay.

Most people don’t run up credit cards with the intentions of not paying them. They have the money to make the monthly payments at the time they use them. And them something happens in their life. A divorce, loss of a loved one, medical problems, or a loss of a job. It is usually something unforeseeable and out of their control. Debtors then have to make the tough decisions of what bills to pay with the reduced amount of money they have and many time the increased expenses. Most debtors make the logical decision to pay on their house, car, and utilities. They put the credit cards on the bottom of the list of things to pay. The debtors that are able to pay their living expenses, but not credit cards or medical bills are good candidates to file a Chapter 7. They will be able to keep their house or car (if they have remained current on the payments) and get rid of the unsecured debt (credit cards, medical bills, collection agencies).

Chapter 7 bankruptcy is a common type of bankruptcy for people to file. It is nothing to be ashamed of. People would be surprised at the number of people that file bankruptcy. It is not common to one class of people, color, religion, or profession. It is all types of people and professions. Doctors, lawyers, police officers, school teachers, and every other type of profession have people filing bankruptcy. Filing bankruptcy is not something to be embarrassed about, but should be seen as a chance for a fresh start. The thing to remember is that filing bankruptcy does not give you good credit. It gives you no credit. You will have to slowly rebuild your credit. You will not be able to get low interest rates. However, you will not have creditors calling and harassing you. You will not owe unsecured creditors. You will only owe the secured creditors you choose to keep. If you are unable to make your car payment and want to give the car back, you can return the car and wipe out the debt.

Bankruptcy can be a good thing if needed and no other options are available.

For more information visit http://www.bankrupcy-alternative.com/after-filing.html or call us directly.

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