The Heart of Filing Bankruptcy
Somewhere in the American vocabulary, there has got to be a list of the top ten most dreaded words like death, divorce, bankruptcy, we’re moving, your fired, etc. These dreaded words all have one common theme, change. Any significant change can be a traumatic experience and filing for bankruptcy is no exception.
At the heart of deciding to file for bankruptcy, every debtor must face the spiritual, emotional decision, as well as the financial decision to file bankruptcy. Each aspect, spiritual, emotional, and financial, calls for a unique conversation we must have with ourselves.
Religion aside, bankruptcy is and can be a spiritual journey in letting go of the material world as you have come to know it. You are letting go and it feels like you have lost control and you are afraid. I hear this in my client’s voices, “I’m a good person and have always paid my debts . . .” We are all good people. Being able to pay your debts does not a good person make, and the freefall happens anyway.
I have seen it many times. Clients will exhaust all of their resources and drain their savings before filing for bankruptcy because they are paralyzed by the fear and stigma of bankruptcy. They may be following their religious dogma that tells them that somehow bankruptcy is “a sin” and therefore, not an option.
I have another paradigm for bankruptcy. In bankruptcy, you are given an opportunity for a fresh start on your finances to begin again. Like in video games, when you hit the restart button, you get to start over. If you have learned the spiritual lesson of letting go of the material realm, you will view this, not as dread, but rather as an opportunity to live much differently than before.
Start from the point of being legally forgiven for your debt; in bankruptcy terms, it’s the date of discharge. Learn to be a good steward of your money and guide it forward, toward a great retirement program for your self and your family. You have more than enough stuff and no longer have to keep up with the Jones’.
Some of my clients don’t need bankruptcy, but rather come to me because they have run out of options on their own. At this point, I would encourage them to follow some sound financial principles and, as a result, I often prescribe Dave Ramsey’s book, “Total Money Makeover.” His book has seven baby steps that really get to the heart of your emotional relationship with money.
These are breakdown or breakthrough times; it’s your choice. I challenge each of us to have a breakthrough in our relationship to the material world and money. This requires being responsible in handling our money and putting it toward good use. Thank you for allowing me to lead the way.
