Bankruptcy Stereotypes

by San Antonio Attorney

It is true that in the past many consumers have abused the bankruptcy process.  They intentionally ran up huge credit card debt just to wipe them out in bankruptcy.  However, not everyone who files for bankruptcy is like that.  This common misconception often hinders honest people who find themselves in situations which they cannot control, circumstances where only bankruptcy could rescue them from financial distress, and not filing bankruptcy at all, leading them to a devastating financial and personal detriment.  The thing is, any one of us could be a divorce, a job loss, an illness, or a judgment away from being in a tight spot where bankruptcy is the only solution. In that case, it is important people should let go of bankruptcy stereotypes and accept reality.

About 75 percent of Americans are living paycheck to paycheck, and some do not have emergency funds.  If they experience an unforeseen trouble, most of them resort to credit cards in order to pay the bills.  Eventually, since credit card companies can add interest on overdue bills, the minimum payments climb as the unpaid balances pile up.  After a while even the minimum payments become difficult to pay.

Similar to debt, bankruptcy is often perceived as the antithesis of wealth.  Then again, many successful people lost almost all their money at some point.  There are rich individuals who recovered from bankruptcy including H.J. Heinz, Milton Hershey, Walt Disney and Henry Ford – all of whom continued to build brands that are well-known worldwide.

An illness, a divorce, a job loss, or a bad business decision can happen to anybody and these are the things causing people to bankruptcy in these hard economic period.  Through Bankruptcy Help, a fiscally troubled individual can stop the financial bleeding.

living paycheck to paycheck

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