I put bankruptcy in the same category as divorce – no one thinks this is a great idea. Even though they do everything possible to avoid it, sometimes good people have to go through it. Even quality bankruptcy attorneys will tell you it is a last resort. The fear, the shame, the guilt – it turns your world upside down.
Sadly most people who file bankruptcy have simply lost hope and can’t see another way out. They’ve given up. About 90% of the people who come to our office or call my radio show have another way out but are too wrapped up in the emotions of the situation to see other options.
But when you’re standing on the outside and not in the middle of the financial mess, it’s easy to see other alternatives. By selling the car, taking an extra job, living on a budget, having a garage sale, quit paying this or that – most people can make it out of the hole. There may be some dings on their credit but it’s better than filing bankruptcy.