Feeling Bad About Filing Bankruptcy

Similar to many problems the first step for bankruptcy is the hardest one, admitting that you may need a bankruptcy. Never once in all my years practicing bankruptcy have I met with a client who wanted to file. In most cases my clients have exhausted all available resources including borrowing from other credit cards, borrowing from family and friends, borrowing from savings and retirement and borrowing from their emotional health prior to resigning themselves that they should consider bankruptcy. I have asked clients why they are reluctant to even consider bankruptcy and the top answers are:

1. I have been told that I will never obtain credit again. This is not true, credit card companies will often reissue credit immediately after discharge because the creditors know you can’t file another bankruptcy for 8 years.

2. I have been told that I will loose everything. Also, not true, bankruptcy in Minnesota includes generous allowances for personal possessions including house, cars, retirement and savings.

3. I feel like a failure. I hope you don’t. Many famous people have been in financial problems and have obtain a fresh start and have went on to great wealth. Some famous bankruptcy filings include: Tom Petty, Donald Trump, Willie Nelson, Larry King, and Thomas Jefferson just to name a few. In Minnesota we have average annual filings of around 15,000 per year. Chances are you know someone who filed and they just don’t talk about it.

4. My friends and neighbors will find out. Most likely they won’t unless you tell them. MN bankruptcy is a public record, however to search for bankruptcy filings a party would need to sign up for a special account administered through the federal court system.

The biggest problem I see is waiting too long before even considering a bankruptcy. At Bolinske & Bolinske we offer a free consultation. No one at our office will ever make you feel bad about filing. Also no one will ever pressure to file. I am happy to give you information to help you make an informed decision.