Conventional wisdom tells New Jersey residents that they are obligated to struggle in order to pay off their debts, regardless of how overwhelming their financial situations are for them. People are often discouraged from filing bankruptcy out of a false sense of moral obligation to faceless corporations. In fact, filing for Chapter 7 bankruptcy does not need to be a last resort, it can be the first step toward a better financial future.
The Internet offers a plethora of advice on how to pay off debt. New Jersey residents are encouraged to spend less and put more money toward paying off bills. However, this advice does not take into consideration the fact that many people are already stretching every dollar they have just to keep a roof over their heads and food on their tables. No amount of advice regarding paying off debts is going to work under these conditions.
Further, struggling to pay off debts can cost an individual the chance at a better future. There is no room to plan for retirement while putting every available dollar toward the payment of debts that were incurred through no fault of the individual. Many people who are in dire financial straits are dealing with medical issues, job loss or some other calamity that necessitated going deeper into debt.
A successful Chapter 7 bankruptcy can put the mistakes and hardships that led to a person’s financial struggles in the past. Everyone deserves a second chance to build a better financial life, and eliminating as many debts as possible through bankruptcy can provide that opportunity. The bankruptcy laws and courts exist for this purpose, and no one should feel that they are not entitled to avail themselves of the process in order to find economic relief.
Source: The Huffington Post, “Why a Chapter 7 Bankruptcy Should be Your First Option and Not a Last Resort“, Steve Rhode, May 7, 2015