Is Filing Bankruptcy Irresponsible? | Mortgage

by MaggieHarlow

When dealt the possibility of filing for personal bankruptcy, handling the shame and failure is the most difficult. To know that people will be judging you, assuming you are a failure. Knowing that friends and family may think you are taking advantage and took the easy way out when you could have paid your debts like everyone else is required to.

The ability to file bankruptcy does not give you a free ticket to purchase what you want with complete disregard and have no intention on paying for it. For a large number of Americans, they are not using bankruptcy as a free ticket. However, there is a small percentage of Americans who intentionally run up thousands debt, only to repeatedly file bankruptcy and not learning how to change their poor spending habits.

But for most of people who file for bankruptcy, many file for because they lost their job and havent been able to find a new one, or the people whom have exorbitant medical bills that they will never recover from, some are single mothers who have been abandoned and dont receive child support or may be buried with the financial obligations of their former partner. For many Americans, its a combination of issues.

I was very judgmental of people who filed for personal bankruptcy. I figured they couldnt budget their money and spent it on things they didnt need. I assumed they frivolously spent their money. I looked down on them for foolishly mismanaging their money.

As I was getting ready to file for personal bankruptcy, and I needed to look within myself, feeling my own shame that I had judged others so critically, and I figured others were going to think the same things about me. As I struggled to overcome my own personal shame and failures, for not planning for the challenges that may happen in the future, the disgust from seeing my name listed as public record in the newspaper, knowing the whispers of friends, family and colleagues whod seen my name in the newspaper, the gossip going on about me.

Do not let the whispers and harsh criticisms stop you from determining the best decision in regard to your family. No one is responsible for your family but you. So are a financial failure when you file for personal bankruptcy? Is it unethical to discharge your debts when everyone else is required to pay for theirs?

As I examined my situation, I decided I was going to take responsibility for the financial situation I created. Is it ethical to pretend that bill collectors are not calling your home? Is it responsible to ignore the collection letters that you receive in the mail? Is it ethical to harbor the illusion you are drowning in debt, of which you will never recover? In reality, I was unethical and irresponsible to my family by not having a personal savings account, or putting money away for my retirement, or saving more my childrens college education. I was unethical and irresponsible for being unable to provide the simple things such as Little League, for my kids

When you determine your financial recourse is personal bankruptcy and make the changes to fix your financial well being, you become ethical and take responsibility to change the future. It is more unethical for you to act like your outstanding debt doesnt exist. Only then can you take the responsibility to repair your familys future.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Maggie Harlow is a property investor and former Mortgage Broker whose Chapter 7 Bankruptcy was discharged in December 2008. Visit her site to learn if you are really bankrupt. Check out her story on how she lost $60,000 by delaying her bankruptcy filing.