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Fear of Bankruptcy Misplaced

By Cathy Moran

Shadow of a businessman standing

Fear follows debt, like a shadow follows you.

  • People in debt are afraid of the caller on the phone.
  • They are afraid of the process server.
  • They are afraid of the truth getting out.

Yet, they fear bankruptcy more, apparently.

They seem to fear that life as they know it will end if they file bankruptcy.

Well, at some level, the miserable life of living in debt; sleepless nights;  having no financial  reserves will end if they file bankruptcy.

But they have cultivated a fear of bankruptcy that is stronger than the fear they live with now.

Most fear is self generated

It’s easy to fall into the trap that filing bankruptcy represents defeat, as a personal failure.

My view:  most bankruptcy these days is driven by job loss, ill health, and divorce.

Some fear public exposure.

They imagine those around them standing in judgment on their life choices.

Yet which of us chooses illness, accident, or unemployment?

The failure I see is the unwillingness to utilize an effective and legal means to become economically stable.

Why no fear of penniless old age

Living on Social Security alone seems to me something worthy of fear.

Almost every client who’s struggling to repay credit cards, now at 29% interest, is skimping on saving for retirement.

They have no emergency reserves.  If they have a job, there’s no pension attached.  They have little or nothing set aside to augment Social Security.

Yet fear of bankruptcy keeps them paying monthly on debt they can never repay.

My last post talked about the institutional purveyors of this fear.

I’m on this soapbox and don’t want to step down til I make some headway on this issue.

The only thing we have to fear is fear itself.

Be fearless.  Better yet, be solvent.

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Image © Tinx

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Filed Under: Considering Bankruptcy

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

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