Stop Beating Yourself Up

Phoenix, Arizona Bankruptcy Lawyers

People crushed by mounting debt, harassed by debt collectors and banks, should not feel alone or be ashamed to find themselves facing bankruptcy. Bankruptcy has a long tradition in the history of Western civilization: the Old Testament book of Deuteronomy, Chapter 15, verses 1-2, instructs the ancient Israelites to do the following:

"At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the LORD's release."

Each year, over 1.5 million people in the United State file for bankruptcy. On almost a weekly basis, we learn about another corporation, airline, or investment firm facing bankruptcy. Now, with the subprime mortgage crisis impacting the housing market, we learn irregular underwriting practices and outright fraud on the part of financial institutions has left millions of Americans facing foreclosure and bankruptcy.

Bankruptcy - Credit Card Companies have a Great Deal to Answer For

The Federal Reserve sets interest rates, which in turn influence banks and credit card companies. One way to stimulate the economy is to encourage and promote consumer spending through lowered interest rates as set by the Federal Reserve. Since the 1990s, banks and credit card companies have promoted consumer spending by luring new customers with low interest credit card offers. Not only were credit card offers mailed to college students and others without an established credit history, minimum monthly payments were reduced to encourage people to carry increasing amounts of debt.

In this sense, banks and credit card companies played a major role in the rise of people applying for bankruptcy. And, because both the banking and financial industry lobbies Congress in regard to rules and regulations, the government did very little to protect consumers from outrageous penalties, teaser rates, and credit card fees. Of course, the government didn't complain too much since increased consumer spending created, in part, the illusion of a vibrant, growing economy. As a result, since the government and banks wanted more consumer spending, putting Americans in debt was considered good for business - for both banks and the government.

Facing Bankruptcy - There's No Reason to Beat Yourself Up

Not only have banks, financial institutions, the Federal Reserve, and the government contributed to the creation of consumer debt but outsourcing and the loss of American jobs has contributed as well. As layoffs and outsourcing burgeoned in the 1990s and after 2000, Americans now find annual layoffs a regular event. This is not to say that we don't bear any responsibility for getting ourselves into debt - we do. However, there were decisions made at a higher level, as well as powerful financial operative forces that played a major role in the rise of bankruptcy.

There is Life after Bankruptcy - Getting Bankruptcy Legal Help

Contrary to what many people think, it is possible to reestablish your credit - and your life - after declaring bankruptcy. Our attorneys can explain what is involved and discuss the options available to you. Additionally, once your attorney files your bankruptcy, creditors and collection agencies are required to stop contacting you. Once you decide to file, all communications and issues are handled by our lawyers, leaving you in peace to begin the process of reestablishing your financial footing.

To schedule a free consultation to discuss your bankruptcy and how we can help you, contact Gukeisen Law Group, P.C. today.