Many Feel Guilty About Filing Bankruptcy
Over the years one of the most commonly repeated things I hear from my clients are how they feel guilty or ashamed that they have gotten themselves into their current position.
Even after I explain to them that the credit card companies whose debts they are trying to discharge will likely be just fine financially after my client files bankruptcy, their moral compass still tells them there is something wrong.
Even when I explain that Congress created the bankruptcy laws so that, on the whole, both sides benefit (debtors, creditors and society as a whole), that still doesn’t seem to assuage the guilt
Then I mention how some of the most brilliant and successful people in our history filed bankruptcy, their ears perk up. One of my favorite historical figures is Thomas Jefferson.
Thomas Jefferson
President Jefferson filed Bankruptcy!
Thomas Jefferson (for those of you don’t know him) was the third president of the United States. He was a statesman, diplomat, architect, author, inventor and farmer. He is widely regarded as a genius and perhaps the smartest of all United States presidents. He wrote the Declaration of Independence. He was a man who gave vision to this country as one of its founding forefathers and leader of this country.
Why do I bring up Mr. Jefferson? Because he was almost constantly in debt. BIG debt. Mr. Jefferson filed several bankruptcies in his lifetime; and his debt was huge in comparison to most individuals’ bankruptcies today.
Don’t Be Ashamed, Take Charge!
The point is, filing bankruptcy is nothing for which to be ashamed. If a person with Mr. Jefferson’s credentials, aptitude and intelligence can repeatedly get himself into situations that require bankruptcy to solve, then it is certainly no negative reflection on you if you need to.
The bankruptcy laws are here to serve a definite purpose that benefits everyone on the whole. It is of course important to be responsible for the debts you incur, but filing a bankruptcy is an act of responsibility. It puts you in a position to move forward, to become productive once again, provides closure, and pays your creditors from your non-exempt assets in a Chapter 7 case (or by other means if the court so approves in a Chapter 13 or chapter 11 context).
See this interesting article on some successful businesses that needed to file bankruptcy as well.
It is important to explore bankruptcy as an option instead of attempting to struggle for years to no avail. There are many factors to consider before filing a bankruptcy, but one of them should not be a guilty conscience.
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