Truth about Bankruptcy

Truth about Bankruptcy

Bankruptcy can be an intimidating process. Most people do not want to even consider the implications of bankruptcy.  However, there is no reason for this to be true. Bankruptcy is, first and foremost, a financial tool to be used to protect your family or your business in difficult financial times. The banks and creditors have been extremely successful in casting bankruptcy as some sort of moral decision; that declaring bankruptcy is a bad act on par with committing a crime.

In reality, the financial circumstances that lead to bankruptcy are often out of the control of those needing the protection of bankruptcy. This protection extends to normal people just as much as it does to large corporations such as Chrysler and General Motors. Furthermore, the drafters of the Constitution intended bankruptcy to be for the protection of real people, and not just businesses. It was intended to protect people from their creditors in order to allow for those people to reorganize their finances and to become a productive citizen again.
Bankruptcy was also meant to allow people to take risks that they would not otherwise take in order to improve their economic circumstances. In this form it was meant to be a safety net for people to take a chance on new business ventures. When you see the true purposes of bankruptcy, it is clear that there should not be any stigma associated with the bankruptcy decision. In tough financial times like we have recently been experiencing, most of our clients have little to no control over their financial situation due to loss of employment.
In truth, bankruptcy allows for people to become productive citizens again without the crippling weight of excessive debt. It is important to remember that bankruptcy is an economic and financial decision and not a moral decision.

Depending on circumstances, certain debts may be discharged. To discuss what type of bankruptcy may be right for your circumstances, contact the Tempe, AZ Bankruptcy lawyers of Greeves, Price & Roethler, PLC online today.

 

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