The Purpose of Bankruptcy

: Reese Baker & Associates

  Filed under: Filing bankruptcy

When some people think of bankruptcy, they think of dishonest people who rang up a bunch of bills and then don’t want to pay for them. Or that people lived foolishly and now are stuck with the fallout of too much debt.

The Truth About Bankruptcy

The reason we have the bankruptcy laws is to give honest, hard-working people who have fallen on hard times a second chance. For the majority of Americans, the financial hard times have been a result of job loss, unexpected expenses, serious illnesses, death, or divorce. If the significant wage earner can no longer bring in the necessary income to pay the bills, people risk losing their homes, cars and other possessions.

While it’s true, we see dishonest people getting away without paying legitimate debts and huge corporations getting bankruptcy protection and getting millions of dollars of debt wiped away, this is not the case for most Americans.

Don’t be Ashamed to File Bankruptcy

If you are holding off on filing bankruptcy because you think your friends and family will think less of you. Consider if they will have a higher opinion of you if you lose your home, car and even retirement savings because of overwhelming debt.

If you fear legal action will be taken against you soon, or you are borrowing against your credit cards to pay other bills, contact a McAllen bankruptcy attorney to see what you need to do to protect your assets and get a fresh start.