In a working paper released Monday by the National Bureau of Economic Research, economists Will Dobbie and Jae Song examine 500,000 bankruptcy filings in the United States to measure the effect of bankruptcy laws on consumers. They found that the bankruptcy code is an incredibly effective social insurance policy. According to their findings, getting approved for Chapter 13 bankruptcy protection “increases annual earnings by $5,562, decreases five-year mortality by 1.2 percentage points, and decreases five-year foreclosure rates by 19.1 percentage points.” (Chris Matthews writing in Forbes)
Think about it. If you have filed bankruptcy, or, contemplated it, how do you feel?
Overwhelmed. Powerless. A failure. Helpless. No self esteem.
These things are NOT true, but, that is how my clients feel when I first see them.
Filing bankruptcy, Chapter 7 or Chapter 13, or Chapter 11, is a way to deal with your financial problems.
They provide some certainty to a situation that feels fraught with disaster.
We all know stress manifests in our bodies, headaches, ulcers, blood pressure, it comes out somewhere.
The picture is my wrist wearing a band for Jim Kelly, Hall of Fame NFL quarterback, who is fighting, and, so far, winning, his battle against cancer. Those are real problems.
Losing a job, not making enough to pay the bills, having the partner skip town with the business proceeds, divorce.
None of these are fun, but they are NOT life threatening, unless we make them that way.
As Mr. Micawber said in “David Copperfield”:
“Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
That was back in the days of debtor prisons.
Now, there is relief, under the bankruptcy code.
How do you spell DEBT relief?
O – K – E – E – F – E.