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Is it wrong to file bankruptcy?

James Doan - Monday, August 20, 2012

During the last fifteen years of practicing bankruptcy law in Southern California, I have had hundreds of clients ask me if filing bankruptcy is wrong.  After all, you incurred the debt and spent someone else's money, and now you're using the Federal Courts to step between you and your lender and tell them they don't get paid.  

So is filing bankruptcy wrong?  When I'm asked this question, like a good lawyer, I counter it with another question... Did you intend to wipe this debt out in bankruptcy when you incurred it?

In fifteen years of bankruptcy, I have come across very few individuals who were purposefully abusing the system for pure economic gain.  I sent those guys packing.  Bankruptcy is often the last resort of honest debtors who intended to and had the ability or reasonable expectation of being able to repay a debt when it was incurred.

So, did you intend to stick it to your creditor, or did something else beyond your control cause you to be unable to fulfill your obligations?  Unemployment, divorce, work injury, illness, and other unforeseeable events are usually the superseding intervening causes of most bankruptcy cases filed today.

Our Founding Fathers knew from the Old World that locking someone in jail was not an effective way to deal with their inability to repay debt.  So they came up with Bankruptcy - Chapter 7 debt elimination, and Chapter 13 Bankruptcy - Debt Repayment.  Wipe out your debt forever, or create a reasonable repayment plan according to what you can actually afford.

Ultimately, it is not my job, thank God, to judge the hearts of mankind.  I can usually tell when someone has been negligent or sloppy about managing their finances.  I can often tell when someone struggles with envy or greed by their comments, behavior, and the reasons behind their indebtedness.  I can observe their spending habits by looking at bank statements and check registers.  While we are all called to make judgments every day about actions and things, we must remember to never judge another's heart. Thank God that's His job!

If you are thinking about filing bankruptcy, call Doan Law Group at 888-362-6529.  We'll schedule you a free bankruptcy consultation.  We have several convenient office locations.

Don't let wage garnishments, foreclosures, lawsuits, and nasty creditors ruin your life.

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