He has all of the virtues I dislike and none of the vices I admire.

Sir Winston Churchill

The shame of having to declare bankruptcy

Thursday early afternoon , May 14, 2009.

As I try to approach bankruptcy from different angles to make its options understandable, I’ve come to realize that I can’t just talk about the technical aspects, the shame involved in a bankruptcy is without a doubt an area that we all have to acknowledge due to it’s compelling nature.

This emotional component can be very damaging if not understood, and properly taken care of. At first, we are frozen deers under the spotlights of our debt problem, we run away from all manner of task which would allow us to make a clear assessment of our situation —we sweep our debt balances under the rug. And, after sinking the ship with our inaction, in the aftermath, we continue to self inflict and cripple ourselves with what we view as the social stigma of bankruptcy.

It’s all in our minds.

First, as I’ve said before, bankruptcy’s sole purpose is to give people a second chance. And, thousands before you have been forced to take this route to get over the hump and continue with their lives. I always recall Walt Disney, who went bankrupt seven times. Hey! get over it, many of the best have tread down this alley.

Now, with a clear head, weigh your options. Are you going to sell your house now, by yourself, negotiate a short sale with your bank, try to give the keys back to your bank “in lieu of the deed”, try a loan modification, or take a chapter 13 or 7?

I’ll be commenting on these options later on. But, I hope you see the point, pulling your head out of the hole sooner will give you better options.

Hi guest,