Resisting bankruptcy: all your fears & excuses
I'll never never get credit again
In fact, you'll be offered new credit (on horrible terms) just as soon as you get a bankruptcy discharge, if not before. People in bankruptcy can get car loans. The situation improves year by year.
I incurred these debts and I should pay them
Repayment is certainly the better approach if it's truly an option: ask yourself, 1) is it possible to repay on the present terms; and 2) at what risk to your future and that of your family?
Most people who struggle to repay debt go without health care or health insurance; emergency savings; or anything set aside for retirement. They gamble their future health and security to repay debt that is frequently far in excess of what they can realistically pay.
I'm ashamed
Most people who file bankruptcy have suffered job loss; divorce; or ill health. A much smaller group got there via poor choices or over optimism about their ability to bounce back from adversity, or a combination. Profile of the typical bankruptcy filer.
The bankruptcy system doesn't condition relief on an assessment of whether you "merit" a discharge. No one sits in judgment about how you got in debt. After 10/17/05, it may channel you into a partial repayment plan based on the means test, if you have a substantial income, but the door to debt relief is still open.
Generally the only people at bankruptcy hearings are others who are in the same boat (and their lawyers). The system treats honest debtors with respect.
While it may be emotionally difficult to admit you are finanically stuck, the result is both psychologically and factually liberating. Remaining in hopeless debt saps energy and efficiency.
3/22/08