I was sitting in court today waiting for my case to be called, when my attention was drawn to the story a debtor in another case was telling. He and his family had been victimized by a fraudulent debt settlement scheme. He had sent thousands of dollars to a law firm in Florida, based on their representation that they would use that money to pay his creditors, and settle the debts he was struggling to pay.
The trustee in the case asked him why he had chosen to do that, and he explained that he had wanted to try to pay creditors, that he hadn’t wanted to just “walk away.” The trustee’s response was telling. He made the point (an important one) that no one who files bankruptcy is forced to “walk away.”
The point of the bankruptcy discharge is that the creditors can no longer try to make you pay; you can pay anyone you want. You can pay a little to everyone, or pick the ones you want to pay.
And, he said, the good thing about bankruptcy is that it works.
There are all kinds of reasons that good, honest people are forced to consider bankruptcy. And there are certainly lots of people who file bankruptcy because they simply cannot pay their creditors, not even a little bit. But it is important to remember that bankruptcy is not an “easy” way out–just ask anyone who has tried to put together all the information and paperwork necessary to file. And it doesn’t necessarily mean you are walking away. You have the option of choosing to pay your creditors if you can. It’s just your choice.
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