Many people feel a sense of embarrassment with the prospect filing for bankruptcy protection. It is a public admission of your financial condition and that it has deteriorated to the point that it cannot be salvage by diligence. While you can easily get into trouble with credit cards and simply spend more than you can afford to repay, more often, bankruptcy is caused by conditions beyond the simple control of the debtor.

You are divorced, and are forced to make do with the same amount of money to support two households. Even if both spouses were working before the divorce, the loss of the economies of scale that are inherent in a marriage dissolve. You have to have two residences, two cars, two of practically everything else.

If your hours at work are reduced, your ex fails to make their child or spousal support payments, or practically any other negative financial event can drive you into a downward spiral of using more credit card debt to juggle your bills.

If you have an accident and are injured or fall ill, you can quickly pile up medical debt and additional credit card debt, as you struggle to cover your expenses when you cannot work. This can be a catastrophic to many people, because they are simultaneously loosing income because they are not working and being overwhelmed by medical bills.

An experienced attorney can help you decide if bankruptcy can solve your economic issues. Bankruptcy serves a necessary function, enabling people to regain their financial health, by obtaining the “fresh start” Congress intended when they enacted the Bankruptcy Code.

Source:, “Wisdom Wednesdays With Lynn Richardson: Bankruptcy Myths 2,” Kelsey Paine, March 13, 2013