There are many laws that protect creditors. Bankruptcy, however, is designed to protect consumers. The idea is the two sets of laws support their respective parties and create a balance of the rights, remedies, and risks between the two.
For some reason, there has always been an effort made by creditors to establish a connection between a consumer’s financial situation and their morality or value as a human being. Creditors wish us to believe that if a person files bankruptcy it is a reflection on their goodness. This stigma holds no merit; in fact, a vast majority of people who file bankruptcy are inherently good people who have come into their insolvency reluctantly and with honestly.
More than half of all people in the United States are eligible to file bankruptcy. Unfortunately, a small number of them realize this, and of those who do, very few of them will actually file. Whether it’s for fear of the stigma that they are not good people, or, because they just don’t understand the process, people eligible for and aware of bankruptcy are extremely reluctant to file.
Conversely, creditors will monitor all laws available to them and use each law as soon as it becomes profitable for them to do so. They do not wait, or question their own morality or goodness when deciding which laws to use. They simply exercise their rights utilizing all laws available to them.
Because the laws protecting consumers and creditors are intended to balance each other, consumers must exercise their rights under the law as quickly and readily as creditors do. When consumers postpone or avoid filing bankruptcy, the intent of the law remains off balance, and the creditors maintain the advantage. Consumers must educate themselves about all of the laws designed to protect them and use those that are beneficial – bankruptcy included.
Maintaining dignity and self-respect during a bankruptcy proceeding is contingent on knowing and believing that your financial situation is completely separate from your character and morality. If you are unsure if bankruptcy might be helpful to your finances, call our office. We know you, like the overwhelming majority of debtors seeking bankruptcy relief, are a good person and we will treat you with the same respect and care that we treat all of our clients. Getting the information that you need to make the best financial choices for you and your family is the only way you are going to improve your financial situation, and we want to be there to help.
