How Not to Think About Bankruptcy

Hiring an attorney can often add undue stress to an already fractious time. Bankruptcy cases are no different. 

As a bankruptcy lawyer in Auburn, Alabama, David S. Clark counsels numerous Lee County residents through shaky financial times. Over the years, he has encountered many different client responses to the fact that they need to declare bankruptcy. Some responses have been healthier than others and when clients have an unhealthy outlook on their situation, it can lead to a more difficult process and additional future financial hardships.

So, as a bankruptcy law firm in Auburn, we want to warn Auburn residents who may be considering bankruptcy about a few ways you should not think about it.

“I am incompetent with finances and there’s no hope for me to learn.”

If someone chooses to declare bankruptcy, then there is inevitably a serious disconnect between income and expenses in the actions of the client. This disconnect can occur for a number of reasons other than incompetence on the part of a client.

A sudden loss of income due to losing a job, unexpected expenses like hospital bills, or a miscalculation from the onset of a major purchase that leads to interest payments the client is unable to pay are all examples of events that can cause someone to declare bankruptcy.

There are mistakes that are made in all of these situations and others like them, but there is a fundamental difference between making a financial mistake and complete financial incompetence.

Everyone is able to improve their financial skills.

Don’t believe the lie that because you now have to declare bankruptcy and need help from a bankruptcy lawyer, you are financially incompetent.

Instead, take advantage of the resources provided to you during the process of bankruptcy like financial counseling and learn how not to find yourself in this situation again.

“Bankruptcy will solve all of my financial problems.”

Bankruptcy is a mechanism within our legal system by which debtors can find relief from debts that they can no longer pay.

It is not, however, a cure all for financial problems. 

Often the issues that cause bankruptcy cannot be cured with the relief of debt at one time. Foundational problems need to be dealt with by solutions outside of the scope of bankruptcy in order to avoid another financial catastrophe.

Debtors usually need counseling about healthy spending habits. They often need to begin taking more personal responsibility for the situation they are in. They sometimes need to find a more steady stream of income than they currently have.

Though a bankruptcy lawyer cannot directly “fix” any of these problems, he can point clients to other people and groups that can help.

“My debts are someone else’s fault.”

Bankruptcy can be an extremely painful and humbling time for debtors. Your finances are laid bare before creditors. You openly admit that you cannot make the payments you are obligated to make. You are subjected to numerous meetings in which others tell you how you must act in order to overcome your debt.

These are humbling, sometimes humiliating processes. Nevertheless, debtors respond to these processes with obstinate pride, insisting that they are not really the ones responsible for the situation that they are in.

A complex situation like bankruptcy often has complex causes. So, during the process of bankruptcy it may be revealed that several individuals and groups share some of the blame for a debtor’s situation. However, for a debtor to take little blame or worse yet, no blame at all, is detrimental to the likelihood of long-term financial recovery.

Admitting there is a problem within yourself and your actions, that this problem has played a major role in getting you into such a bad financial situation is key to your bankruptcy being a success.

Let David S. Clark Help You Think About Bankruptcy

David as an Auburn bankruptcy lawyer and his team of professionals have years of experience helping clients get out from under their debts by helping them to rightly think about bankruptcy and walking with them through the whole process.

If you are looking for a bankruptcy lawyer in Auburn, contact David S. Clark today for a free case evaluation.