Filing for personal bankruptcy is a very complex and complicated process, mostly because there are many personal, emotional and personal ethics to process first and foremost.

Personal Issues:

First of all, have you discussed your financial situation honestly and thoroughly with your spouse or loved one? Many of us come from a place where getting into financial trouble is something to be shameful of, or somehow indicates personal or professional failure. That is simply not true. Many issues affect our financial health and well-being that are out of our control:

Loss of a job

Loss of hours, a pay cut, a cut in bonus pay

Health issues that have created serious and overswhelming medical bills

A struggling economy that is negatively impacting a small business

Divorce

And more…

With that said, there are decisions that we make that we must be accountable for before taking the step toward declaring bankruptcy. Does this sound like you?

Unable to stick to a budget

Unwilling to stick to a budget

Unable to truly understand "need" versus "want"

Spending beyond your means

Secret shopping that you hide from a spouse or loved one

Compulsive shopping, even shopping that you cannot quite control

Guilt over money, feeling guilty about shopping and purchases made

Those personal issues you will need to get a handle on as bankruptcy can give you a fresh start, however, if you do not get to the bottom of compulsive shopping or an inability to stick to a budget, you could find yourself with a fresh start that you do not manage and continue down a path of financial recklessness and irresponsibility.

Emotional Issues:

Many of us were raised to be proud, to be responsible with our money, not to live beyond our means and to build a nest egg for our retirement. So when we find ourselves with money woes, it is something that all too many of us keep a secret due to feelings of shame, helplessness, guilt and more.

Are you staying up all night worried about your finances?

Are your financial troubles affecting your health?

Are you distracted at work, or are your issues affecting your ability to perform your job?

Do you feel yourself pulling away from friends and loved ones so you do not have to expose your financial issues, or lack of money?

Are you avoiding your phone, have had to change your number, or literally scared to go to the mailbox?

You can declare personal bankruptcy and still hold your head up high. You need not feel shame or a sense of failure at all. If you are seeking a fresh start, you may be able to achieve just that and get on a path of financial security and focus on your health, your family, and your life.

There may be resources in your community to help you with your emotional and psychological issues regarding your finances. Counseling is available, as well as support groups for consumers just like you. Reaching out and making those connections may be the link that helps you realize that you are not alone.

Personal Ethics:

How many of us have heard:

Bankruptcy is for losers.

Bankruptcy is for people who just want to take advantage of the system.

We get stuck with the bills that "they" walked away from.

Bankruptcy is for the rich, they can walk away from their debt and I am stuck paying mine.

If you charged it, you have to be responsible for it.

Bankrutpcy hurts all of us, those of us working hard to be responsible and pay our bills.

Yes, we have heard those statements or variations of those awful comments. Unfortunately, sometimes the tone gets even more vile. Guess what? WHO CARES WHAT THEY THINK. There are always negative people among us, people who will be critical of anything and everything. You have no control over their lack of knowledge, lack of understanding, lack of compassion.

Many consumers who file for bankruptcy are highly ethical, responsible and upstanding citizens in our communities, churches, neighborhoods and schools. If you are reading this at a cafe, or in a public place, look up. Look around you. I bet at least one person you are looking at may have or may be declaring bankruptcy or in some form of credit counseling or debt management. Are they losers, have horns or are robbing their fellow citizens of their financial future? Hardly.

I recently heard that every 30 seconds, a consumer is filing for bankruptcy. You will have to manage your personal ethics and know that the true bottom line of your finances and financial future is yours and only yours to decide. You need to remember that if you are strugging, if you have wiped out savings, if your debt and the stress that you are carrying is making you ill or your situation is negatively affecting your ability to work and to manage the relationships in your life…you MUST get help. You owe it to yourself and to those that love you to deal with your financial situation so you can get on with life and make the dramatic changes and improvements that you must make to secure your financial future going forward.

Next up…Preparing for the consultant with a bankruptcy lawyer.