Friday, October 3, 2014

Why I Don't Advocate Bankruptcy

I received an email recently from someone who said they enjoyed reading this blog, but wondered why I had no posts on Bankruptcy. They were wondering if perhaps they could do a guest post on this subject. After careful considering I had responded that I really did not think Bankruptcy posts were a good fit for this is why....

1.) I don't advocate Bankruptcy, while it may have it's place for certain circumstances, I think one needs to take full ownership of their financial decisions good or bad. Yes things happen sometimes out of our control, yet you spent the money, you owe that  debt and Bankruptcy should not be an easy way out. It should be only considered after every other possible option has been exhausted. I am not fully against filing Bankruptcy, I just think it should be avoided when other options may be available and should be weighed extremely carefully before entering into it.

2.) I don't have much debt personally so have no reason to advocate Bankruptcy as I write about what we live and experience personally.

3.) This blog is about poverty and living as well as one can on a minimum wage job. Lets face it, who in this financial genre would ever be able to afford to even file in the first place? Bankruptcy is not cheap and most in the financial range that I write about, would never be able to afford the filing fees. That is why pay day loans or over-drafting ones bank account ( If one is lucky enough to even be able to have a checking or savings account) is so attractive. Well okay maybe not attractive but a temptation many give into simply because they want to eat or not have their electricity shut off that week. It would be far easier to pay the $30 overdraft fee than come up with $1000 to file bankruptcy.

4.) Bankruptcy is more for higher income ranges as they usually carry far more debt they would need to dig out of the burden of. They also would be able to either pay the filing fees or sell enough material belongings to come up with the money to file.

At the end of the day, I don't write about it or talk about it because I think far too many use it as an easy way out rather than how it is intended to be used for. I do know a few personally that used it for really good reasons and their circumstances made it a good choice for them. I know far too many that not only filed pre-maturely as an easy way out of their responsibilities, but took no lessons away from it and filed again 7 to 10 years after filing the first time around! Re-peat bankruptcy filers, it does happen.

Since I do not have any personal experience with having a need to file nor having the funds to file, it simply is not a subject I give any thought too.

Only you would be able to answer if filing Bankruptcy would be a good choice for your circumstances and there is plenty other sites that could give you the information you seek on it, much more qualified than this blog. The only advice I would have to offer is to think very carefully about making the decision and not to jump into it without considering every possible option there would be. There may be a better choice and at any rate, if your debt load is that heavy, regardless of what you choose as an option to deal with it, there will be a need for big lifestyle changes so you don't wind up in the same circumstances later down the road.

Good Luck to you in paying down your debts!

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