I Declare Debt Freedom, not Bankruptcy!!!
For many, Bankruptcy is taboo because it is seen as the ultimate affirmation of financial failure. The shame and embarrassment shouldered by people who are struggling to pay their debts is unjustified and needs to be dispensed with. The need for relief from debt is not unusual. It was recognized by our founding fathers when they gave Congress the power to enact federal laws on bankruptcy. Then why do we feel disgrace if we need to file for bankruptcy? Think about the way we discuss businesses or people who file for bankruptcy protection. People usually say, “Hey, did you know that so and so declared bankruptcy?” The word “declared” connotates something adverse. She was declared an incompetent. He was declared a bankrupt. What this does is paint an ominous picture of what happens when you file for bankruptcy. Some may visualize that simultaneous with the filing of the bankruptcy petition, you are also making a big announcement to the world, “I DECLARE BANKRUPTCY!!!” Or they envision having to appear before a bankruptcy judge who points her finger at you, declares you a bankrupt and orders you to wear a scarlet “B.” Even Michael Scott, Steve Carell’s character in The Office, was under the impression that a declaration needed to be made to seek bankruptcy protection. In the episode called “Money”, after it was suggested that bankruptcy may help Michael with his money problems, Michael proceeded to shout to the entire office, “I declare bankruptcy!” When he was advised that he cannot expect anything to happen by just saying the word bankruptcy, Michael retorted, “I did not say it, I declared it.” What actually happens when you file a bankruptcy petition is an order for relief is entered, not a declaration of bankruptcy, and this order for relief lets your creditors know you are seeking the protection and relief that you are entitled to under the Bankruptcy Code.
So, all the cynicism that surrounds bankruptcy is misplaced. Let us recognize it for what it is. It is a tool to help individuals and businesses who are experiencing financial struggles, and in many instances, these circumstances came about through no fault of their own. Bankruptcy laws were enacted to give the honest debtor a fresh, new start. Presently, with the abrupt outbreak of the Covid-19 pandemic and the unexpected shutdown of the economy, many people and businesses are suffering unforeseen financial losses. Bankruptcy was designed to help with this precise situation. It provides debt relief by allowing you to discharge certain debts, stops your creditors from their collection efforts and allows you to get back on your feet. No one wants to file for bankruptcy and the decision to file is never an easy one. Financial stress is debilitating and contaminates other areas of your life such as your health and relationships. The choice to file may be the best option available and will put you on the road to recovery. Therefore, when a bankruptcy petition is filed, the person or entity filing is seeking help, relief, rehabilitation, not a label or a declaration. If you are experiencing a financial hardship, talk to an experienced bankruptcy attorney and discuss your options. Seek the help you are entitled to under the law before the stress affects all other areas of your life. Declare Debt Freedom, Not Bankruptcy.
Kimberly Berson is a bankruptcy attorney with over 25 years of experience. She also serves an adjunct professor of business law and an instructor of bankruptcy law and legal research and writing for future paralegals. You may contact her kbersonlaw@gmail.com, 516-847-5122 or visit her website, kbbankruptcylaw.com.
#bankruptcy #debt relief #debt freedom #freedom
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