The word “bankruptcy” itself holds a stigma in the world today. A number of reasons exist for this stigma. Most believe it is a morally inexcusable thing to do; that a person’s word requires them to pay their debts. Indeed, that a person’s word is their bond. Further, that only a morally corrupt person would spend up a debt they could not and would not be willing to pay. These ideas are just as strongly held in Idaho as they are anywhere else, maybe even a little stronger due to the underlying religious backgrounds of the area.

The truth is that most individuals across the country who find themselves declaring bankruptcy are there for one of three reasons:

1) Reportedly, 62% of all individuals in bankruptcy were driven there due to medical bills. In today’s society and the costs of health care and health insurance, this number is only likely to increase.

2) Of the remaining 38%, a larger portion of them find themselves in bankruptcy due to the loss of employment. As our economy continues to teeter and sputter, the number of individuals seeking this relief is also likely to increase.

3) What remains of the 38% find themselves in bankruptcy due to divorce. This class of people is also increasing in size and occurrence.

A very, very small portion of people find themselves in bankruptcy for old-fashioned poor planning. Before you think bankruptcy should not extend to these people, rest assured; bankruptcy is not necessarily kind to this class of people because these people tend to lose much of their ill-gotten lucre from the backs of those who extended them credit.

It should probably be noted at this point that mostly middle-class America files bankruptcies. It is not the mega rich or the destitute. 14-20% of all bankruptcies fall within a year of a business failure (keep in mind this failure can be brought on by physical injuries and divorce, tying in the stats from above).

No shame should be felt in considering bankruptcy. There is no more shame in bankruptcy than going to a creditor and asking for a restructuring of debt or asking a friend to give more time to repay a debt.

The founders of our republic gave Congress the power to enact uniform laws on bankruptcy. Even in 1789 the founders envisioned and knew the role and purpose of bankruptcy to give a fresh start to individuals. Since the first bankruptcy code has been in place since 1800 (and repealed and re-added) millions of individuals needing a fresh start have found it in bankruptcy. Bankruptcy, included in the Constitution, is as American as apple-pie. One should not be ashamed of the ability, by law, to remove an oppressive or careless creditor and to find a new horizon.

Usually, debt is found on credit cards. These credit card companies charge interest rates that are exorbitant. While modern statutes are attempting to change this, fees exist that continue to sink a person into debt. Once found in debt due to some situation like divorce, medical need, or loss of employment, the ability to successfully extricate from the debt can be impossible. Especially if further unseen events spiral the debtor further into debt. This creates a dire hopelessness.

Bankruptcy allows a party to rise out of the mire of debt for the rest of your life. Most importantly, it is legal and within the bankruptcy framework that a person can find that respite, or the fresh start (as referred to in the bankruptcy industry).

Bankruptcy is available to all individuals. Some restrictions exist on what form your bankruptcy will take. Bankruptcy is not the best solution for everyone. Send us your information. We will contact you, set up an appointment, and help you determine how to proceed to find your fresh start. Today you can start the process, with the help of a lawyer, to help relieve the debt you may be under.