Ask the Bankruptcy Expert

Should you feel guilty when you go bankrupt?

The vast majority of people who file for personal bankruptcy never dreamed they would find themselves in that situation. For many, bankruptcy poses a number of moral dilemmas; one of the questions we hear is Should I feel guilty!

Most bankrupts had good jobs and were able to borrow but then, unexpectedly, problems started. For many people financial problems start with job loss, a marriage breakup, or even medical problems that prevent them from  working. They use credit to pay bills, but then find themselves so far behind that they have no choice but to go bankrupt. They know they owe the money and want to pay it and feel guilty about going bankrupt. They are afraid they are taking the easy way out.

If however, you used credit when you had no intention of repaying you have committed fraud and should feel guilty. However, the vast majority of people who go bankrupt do not commit fraud. They incurred debt for normal living expenses, and then when their circumstances changed, they were not able to pay their bills.

Ask yourself, is it better to go bankrupt than have your wages garnisheed for many years. Is it more important to feed your family and pay your rent?

If you have more debt that you can handle, call Valerie Norrish 403-529-2727 at Norrish & Associates Inc for a free consultation to look at debt management options.

 

 

August 2011 Article

Advantages and Disadvantages of personal bankruptcy
Bankruptcy provides these advantages:

  • Protects from collection action, legal action and wage garnishees
  • Eliminates a person’s unsecured debts
  • Is relatively quick
  • Can be inexpensive relative to the other options.

On the other hand, bankruptcy has these disadvantages:

  • Is very hard on your credit history
    (basically resets your credit history to zero when completed)
  • May require you to surrender some possessions to your trustee
  • Requires you to keep detailed records of your income and expenses while you remain bankrupt.

Although bankruptcy adversely affects a person’s credit rating, most people going into bankruptcy have such a bad credit rating that nothing will make it worse. In fact, after bankruptcy, a person is a better credit risk because he or she has no debt. Personal bankruptcy is a powerful vehicle for a debtor to get a fresh financial start.

To obtain more information or discuss your financial situation contact Valerie Norrish at 403-529-2727 for a free consultation.