It doesn’t take a rocket scientist to figure out that the US is facing one of the toughest economic times in the history of the country. Currently, the US debt has surpassed the annual GDP rate, making the United States the most indebted nation per capita in the world. With this kind of behavior in the federal, state and local governments is no surprise that Americans have followed suit with the same behavior. As of the end of 2011, the average American has close to $16,000 in credit card debt. This is taking into consideration all Americans, including those too young and too old to even use a credit card. It’s pretty frightening to think that the credit card debt is now close to $800 billion. This doesn’t even include the student loan debt problem that has now surpassed $1 trillion. Add to that mortgages, car loans etc. and we have a bubble that is about to pop. Not enough money in the world will bail us out and as many countries of the world are bailing out of the US dollar, the US won’t be able to print their way out of this one.
As Americans, we have been raised with a lot of pride. The growth of this great nation was brought about by Christian values and a capitalistic society. There probably isn’t one person in the world that hasn’t heard the phrase the American dream. People come from all over the world just to get a piece of this and leave persecution of socialistic countries that suppress the entrepreneurial spirit. Part of what makes this country great is being able to have second chances when things don’t work out. Filing bankruptcy is a way out of unsustainable debt when unforeseen circumstances arise. The problem is, many Americans let their ego get the best of them and walk around with a chip on their shoulder while trying to avoid filing bankruptcy. The topic of bankruptcy to many holds a stigma of failing. To this group, filing bankruptcy is saying that you’re a failure, when in reality in many cases it’s just plain old good business.
Over the last couple years many household names have filed for bankruptcy to get out of bad labor contracts, overpriced vendors and so on. Most of these companies leave a bankruptcy filing being leaner and meaner and hence becoming more profitable. When someone hears about this, people think of the wisdom of the CEO that pulled the trigger and entered bankruptcy. So why would an individual filing bankruptcy be bad and a big business filing be good business? It’s because of the stigma that crushes an individual’s ego if they need to use a bankruptcy filing as a way out. To big business a bankruptcy attorney is an asset to the team and in this economy we should take on the same attitude. We didn’t receive bail out checks back in 2008 like the big banks did and it’s time that the perception of filing bankruptcy changes. Pride can be harmful to relationships, finances, work and every aspect of life if you let it control you. Learning to be humble and asking for help when trouble arises will usually shorten the length of pain that you must endure. The first step to freedom when financial trouble arises is consulting a bankruptcy attorney to discuss one’s situation.