Guilty About Filing?

The privilege of being able to file bankruptcy is your Federal right and also your constitutional right given to you by our founding fathers and guaranteed by the U.S. Constitution.  Why would you feel shame or guilt about exercising your time honored legal and constitutional right.  You should also know that your credit card lenders have already factored your bankruptcy filing into their books and accounting.  Your filing is actually expected.  So don't feel ashamed or guilty.  Feel liberated to exercise your legal right.

7 Reasons Not to Feel Guilty about Filing Bankruptcy

There are seven very good reasons why you should not feel guilty about filing bankruptcy.  In addition to being your constitutional right, and in addition to the fact that your bankruptcy filing has already been accounted for by your lenders, you may have been the victim of suddenly hiked interest rates.  When rates are hiked and payments double or triple, you can no longer afford to make your credit card payments.  The financial institutions in our county have all received their financial bailouts.  Don't be ashamed to receive your bailout.  Here are 7 reasons why you should not feel guilty about bankruptcy San Diego.

1.  It’s Your Constitutional Right

Simply put, bankruptcy is your constitutional right written into the U.S. Constitution by our founding fathers who founded the United States more than 200 years ago.  Why feel guilty about exercising your constitutional right?  It’s your legal right created with the intention that you’ll use it when you need it.

2.  Credit Card Companies Expect You to File

It’s no secret that the United States economy is driven by consumer spending.  Lenders spend billions of dollars to advertise with subliminal messages that encourage us to purchase items we cannot afford on credit.  More than a billion credit card solicitations are mailed out in the United States each year.  Solicitations often begin from the tender age of 18, when the credit card company representatives swarm colleges campuses to promote their credit cards.  The credit card companies then continue to extend us credit to the point that all of our excess disposable income is being spent on minimum payments.  There is no question that the credit card companies play a role in pushing consumers into a situation where a bankruptcy filing is inevitable.  The credit card companies expect you to file bankruptcy. 

3.  Credit Card Companies Have Factored in Your Filing

The fact is, the lending industry has already factored and accounted for your bankruptcy filing.  Lenders charge the high interest rates that they demand because they expect that many borrowers they lend money to will become unable to repay and will have no choice but to file bankruptcy.  That’s why they charge the exorbitant interest rates that you are paying, so that they can absorb the elimination of debt that happens with your bankruptcy filing.    


Who knows, with all those finance charges you’ve paid over the years you’ve probably already paid, all by yourself, for the entire loss your lender will sustain by your bankruptcy filing. Go through your credit card records when you have time and add up how much you’ve paid just in interest charges.  It may exceed your entire credit card balances. 

4.  Credit Card Companies Suddenly Hiked Rates

In 2009, many credit card companies increased their interest rates to the 29% range, forcing many borrowers to file bankruptcy on credit cards, even for borrowers who had good credit and were making their payments on time.  Why did they do this?  Because a law went into effect that limited how often and how fast credit card companies could increase interest rates.  So credit card companies just hiked the rates up to the 29% range before the law took effect.  While this may not be that big of an issue for someone whose balances are low or close to zero, for those borrowers with high balances who were planning to pay down their balances over a couple of years, the increased interest rates caused their minimum payments to double, or even triple.  At 29% interest, without making any payments your credit card balance will double in 3 years.  So if you owe $50,000, at 29% interest your balance will become $100,000 in 3 years.  This reality is making it impossible for many borrowers to repay their credit card debt and is forcing many borrowers to file for bankruptcy to eliminate their credit card debt and obtain a fresh financial start. 

5.  You Need to Get Out of Debt

For many borrowers, if they do not file for bankruptcy they may never get true debt relief and they will be stuck in a downward spiral of debt that they cannot escape.  Without filing bankruptcy, they will never be able to get out of the hole they are in- they will never be able to get out of debt and have a real chance at future financial stability.  Being in a situation where your payments have become unaffordable doesn’t make you a bad person.  It just means that financially times got tough.  And in such times you often have to make the difficult, but financially logical decision, even if it means filing bankruptcy.

6.  It’s Your Turn for a Bailout.

In this age of billion dollar bailouts, where the big banks and credit card lenders received 700 billion dollars in bailout funds to help them recover from their mistakes and bad financial decision, you really have to stop and ask yourself: Should I feel guilty now that it is my turn to ask for debt relief?  Should I feel guilty for exercising my constitutional right and my federal right to file bankruptcy and receive a fresh start?  The banks got their bailouts and are financially successful today.  It’s your turn for a bailout so that you too can get on the road to a more secure financial future.

7.  Don’t Feel Guilty, Feel Liberated

The social stigmas that used to surround bankruptcy no longer exist.  Bankruptcy is now viewed as a positive decision. It's often one of the most financially responsible things that you can do for you and your family so that you can get out of debt and get a fresh start.  Making such a positive financial decision can really be liberating.  So if you are in a situation where you need to file bankruptcy to protect yourself and your family, don’t feel guilty.  Feel liberated!  Exercise your constitutional and federal right to file bankruptcy San Diego and receive debt help and a fresh start in life.