Bankruptcy carries with it a stigma. It is seen as a refuge for the “deadbeat” - an easy way for someone who knowingly and voluntarily entered into a credit agreement to shed a legal obligation to pay a debt. So many of the people I meet with to discuss their financial situation express to me that meeting to talk about filing bankruptcy is really their financial last resort - that they have gone to great (and sometimes financial painful) steps to avoid having to make the appointment to start a bankruptcy filing.
We understand this at Kain & Scott - we hear this from our clients every day. But while bankruptcy might carry with it a stigma, anyone who is thinking about filing a bankruptcy also needs to understand that we have a bankruptcy law in the United States for a reason. And the reason is that bankruptcy works to relieve financial distress. Why is this?
First, bankruptcy is legal. Congress makes laws regarding bankruptcy that set the boundaries for what debtors and creditors can do when a bankruptcy case is filed. There is a Bankruptcy Court system in place to enforce the bankruptcy laws, so if either a debtor or creditor deviates from what the bankruptcy law allows, the parties on the other side have a way of being protected.
Second, bankruptcy is transparent. Every bankruptcy debtor is required to fill out detailed schedules regarding property ownership, debt, income, expenses and financial transaction history. All of the bankruptcy debtor’s creditors are able to see a fairly detailed description of what is going on financially. And since bankruptcy debtors have to verify the information in the paperwork under the penalty of perjury, there is reassurance that the information in the paperwork is correct.
Having a transparent legal process enhances the ability for the bankruptcy law to work as intended. So the question is whether filing a bankruptcy case is right for you. How do you know? The best way to find out is to set up a time and date to meet with one of our attorneys at Kain & Scott - we’ll help you analyze your financial situation and be with you every step of the way if you decide that filing a bankruptcy case is the best thing for you to do.
CONCLUSION
When the time is right, or when you are ready, reach out to Minnesota’s LARGEST CHAPTER 7 and 13 BANKRUPTCY WEBSITE by going now to www.kainscott.com. You will be so happy you did!
