Is Bankruptcy Wrong?
Bankruptcy is simply a tool to allow you to restructure your finances. In most cases, there are debts that go away and the creditors cannot ever collect on those debts again. Consider the following:
What’s Your Credit Card Interest Rate These Days?
Most people who file a bankruptcy have significant credit card debts, which will go away in a Chapter 7 bankruptcy. The Credit Card companies can typically change the interest rate on your cards after you make a late payment, and some card agreements allow the interest rate to change whenever the bank wants to; all they have to do is give you notice that the rate is changing. A typical rate imposed after a late or missed payment can be as high as 25%. The interest rates are this high because the card companies know that some accounts will not be paid. Everyone who makes payments on a card with a high interest rate is paying extra to make up for the accounts that won’t be paid. The credit card companies budget for this, plan for this, and do not take it personally. It is just business.
If You Want to Repay Any Debt, You Can.
Bankruptcy does not prevent you from paying bills, it only prevents the creditor from forcibly trying to collect. If you want to repay any of your debts, you are free to do so.
Know When to Change Course.
Restructuring your finances is a smart move if you realize that you are having financial problems. Donald Trump is one of the most famous businessmen in America. Several of his companies have filed for bankruptcy protection, most recently in 2008. Donald Trump knows that it is a good decision to stop the financial bleeding and reassess things. Over 1000 people filed for bankruptcy protection in Orange County in the first three months of 2009.
Here is a link to a story from the Los Angeles Times story about bankruptcy in 2009.
Advice From the Good Book.
Finally, there is Biblical support for the release of debt. Deuteronomy 15:1 and 15:2 reads as follows: “At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbor shall release it; he shall not exact it of his neighbor, or of his brother; because it is called the LORD’s release.”
I am Ryan Davies and I provide bankruptcy services for the southern California communities of Lake Forest, Rancho Santa Margarita, Laguna Niguel, Laguna Beach, Laguna Woods, Aliso Viejo, Mission Viejo, San Clemente, Irvine, Costa Mesa, Newport Beach, Tustin and Santa Ana.
