Law Office of Judith A. Descalso Law Office of Judith A. Descalso

Is it taboo to consider filing for bankruptcy?

"Should I consider filing for bankruptcy?" This question begins for many people as a whisper of a thought in the back of their minds as they look over all of their financial commitments and compare them to the, at times, trickle of income they rely upon. While for many years there was a middle-class in this country that was able to meet all of their financial obligations, and at the same time put aside retirement savings, emergency fund savings and perhaps even college savings for their children, those days seem long gone for many people, most likely including many of our Escondido readers. For the vast majority of people throughout America these days, income is basically spent as quickly as it is earned, as millions exist in hand-to-mouth fashion.

As a result, the last several years have seen millions of people begin to think about the proposition of filing for personal bankruptcy as more than a distant, unthinkable action. For millions, Chapter 7 bankruptcy in particular has become very real.

But, there are still many more people who could benefit from this debt solution. The unfortunate reality, however, is that many Americans still harbor a great deal of fear about what the bankruptcy process could do to their overall financial status. Recognizing this dilemma, a recent article tried to assuage many of the fears associated with this common option millions have used to discharge debt.

Perhaps the most important point made in the recent article is that the people who end up filing for bankruptcy usually aren't doing so because they are reckless and irresponsible spenders with thousands of dollars in debt on credit cards. The article emphasized that most filers usually would not be in whatever financial mess they found themselves in if some unexpected circumstance hadn't occurred, like the loss of a job or a sudden medical issue. These are some of the typical reasons Escondido residents could find themselves contemplating the advantages of a bankruptcy filing.

Source: westfaironline.com, "Bankruptcy a viable option for some," Stephen P. Wright, May 27, 2014

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