Why Bankruptcy is NOT a Dirty Word

By: Michael Goldstein
Link to article: http://www.jdsupra.com/post/documentViewer.aspx?fid=55bd06ef-ed39-427c-9ca8-747a0e0ea9c4

Unfortunately, in recent years many debt consultation companies, loan modification companies and real estate and mortgage brokers have attempted to mislead the public into thinking that bankruptcy is a dirty word and can end your credit life. These companies are trying to create the propaganda that “bankruptcy” is a word best whispered to yourself in the center of a Middle East war zone. The truth of the matter is that bankruptcy is actually the best course of action when you are struggling with debt and bills you can not handle without some form of assistance.

I am not going to sugar coat bankruptcy because if you are in debt no matter if it is credit card or mortgage issues; it is not a great place to be in. However, bankruptcy law is the Federal sponsored and regulated course of action to help consumers get out of their debt and start their lives again. Unlike bankruptcy, debt consultation companies, loan modification companies and real estate and mortgage brokers are not sponsored or regulated by the Federal Government.


Bankruptcy law is as old as our country. In fact, the concept of bankruptcy was so important to our Founding Fathers that they gave Congress the power to create bankruptcy courts and rules in Article III of the United States Constitution. The drafters did not wait until Article Ten or Twenty but added it as early as Article three in the U.S. Constitution.

If bankruptcy was such a terrible thing to do, the Federal Government would certainly have removed it from the laws and not sponsored it. Congress would certainly not have amended the rules in 1978, or again in 2005 to add more complexities to the Bankruptcy code or Title XI. So, the little dirty word is not
bankruptcy, rather all of the other marketing schemes to get you to spend more money are the dirty parts of the consumer debt business. As a consumer debt attorney, and a founder of a debt relief agency, I would suggest you go right to source to fix your debt with a bankruptcy counsel rather than waste both time and money with companies that are not sponsored by the Federal Government, or that must follow specific rules and regulations to ensure consumers and creditors are treated fairly and equitably.

If you are thinking about entering into a Debt Settlement program you need to be very careful. Based upon what I have seen as a consumer debt advocate over the past ten years, I am personally aware of only a few companies out of the many that advertise debt settlement on the internet that I would trust to try to resolve a debt for my friends and family.

The key to remember in all of this is that if you feel that your debts have spun out of control and you can not catch up with your credit card payments, or mortgage payments, or some other form of debt, your best bet is to set up an appointment and speak with a bankruptcy lawyer today and find out what options are available to you.