I was having a conversation recently with a friend. We were talking about my practice and bankruptcy in general. It was just another conversation, until he told me, “I think bankruptcy is stealing.” He was essentially challenging me, and the subtext of his comment was how could I help people who steal. The comment caught me really off guard. I know that there are lots of misconceptions about bankruptcy and the people who take advantage of the bankruptcy laws to get their financial lives back on track, but I hadn’t heard anyone call them criminals.
I took a deep breath and decided not to take his comment personally. Then I shared my perspective with him.
First I explained that bankruptcy is allowed under the United States Constitution, and some would argue is a tradition as old as the Bible. In their wisdom, the Founders included the right to bankruptcy in the Constitution, right along with freedom of the press and the right to bear arms.
Second I shared some stories of my clients. He had heard stories of people running up credit cards on flat screen televisions and vacations, because they knew they were filing bankruptcy. I told him that I had yet to represent any clients who had done that. My clients are hardworking people who desperately want to pay their debts. My clients have drained their retirement accounts to stay current on their modest homes after they became unemployed. They are people who have had unexpected medical expenses that have overwhelmed their monthly budget. Unable to pay rent, afford to put gas in their car, and feed themselves, they turned to the only solution that could truly help them: bankruptcy. My clients are people who have gotten divorced. Suddenly their two-income home has become a one-income home. Their once reasonable budget has ended up being woefully short or their former spouse has left them on the hook for their bills.
Bankruptcy is not stealing. Bankruptcy is your legal right and allows you to get a new financial start. Before you decide whether bankruptcy is a good idea, talk to a Colorado bankruptcy attorney to get the facts.