BANKRUPTCY: A NEW CHAPTER

Living in world fueled by entrepreneurship and corporate power-plays, we are constantly bombarded with news briefs and newspaper coverage of companies being forced into bankruptcy. Chapter 11, chapter 13, chapter this and chapter that. We hear the information, but our detachment from this echelon of the social strata is so great that we as average income earning Americans are not able to listen. Or, at least not able to relate. That is unless you or someone in your family or circle of friends happened to work for these companies. Now they are faced with their own financial hardships, as well as hard decisions that need to be made about their livelihood. Should the idea of filing for personal bankruptcy be lent some credence by these individuals, or any individual who finds themselves in financial ruin for that matter?

WEIGH OUT ALL OPTIONS

Before filing for bankruptcy, you should first consider whether the debt problem you are facing is only temporary. Although the odds of recuperating from your current money situation may seem insurmountable, it may not be time to throw in the proverbial towel just yet. For example, there is a big difference between being permanently disabled -- and consequently rendered unable to work for the rest of your life (or able to work, but with limited capacity), and losing your job. The first example might warrant filing for bankruptcy, for the problem being faced is almost undoubtedly permanent. However, with regard to the second case involving the loss of employment, it is highly unlikely that another job will not be procured, and a steady flow of income will soon resume. Also, it is important to understand that creditors are -- despite popular thinking -- also human beings. They are also business people. Therefore, it is not in their best interest for you to file for bankruptcy. Their lifeline is the customer, and you filing for bankruptcy basically equates to them having profit taken from their pocket. Therefore, do not be afraid to request help; be it in the form of reduced or skipped payments, or even changes in billing dates. The point is that before you commit to filing for bankruptcy, be sure that you hear, and listen to, your common sense.

About the Author:

Chris Sparling is a graduate student and screenwriter. His upcoming film “An Uzi at the Alamo” is set for festival release in November of 2004.