While 30 years ago there may have been shame in filing for bankruptcy, that is no longer the case these days. Due to hard economic times in the California area and across the country for that matter, an increasing number people are filing for bankruptcy. There is no shame in it. It is just a business decision. Bankruptcy was setup in the first place to help consumers in over their heads see their way clear to a new beginning. What consumers need to learn however, is how to keep the same conditions from happening again.
As a Bankruptcy Lawyer in Irvine will tell any of their clients, the need for budgeting and careful financial planning is imperative to a fresh new start. The credit card offers may come pouring in after you have filed for chapter 7 or chapter 13, but this doesn’t mean the average consumer should snap up the offers. Instead, the offers should be considered prudently and the majority of them should be torn up and thrown in the trash. Cash should be king. Establishing a bank account with a large nest egg to tide you over during difficult times should be more important than establishing new credit cards with higher limits.
A Bankruptcy Lawyer in Irvine sees a number of people in their office every week filing for bankruptcy. Some of these people are two time offenders. What these people did not learn was the importance of money management. It’s imperative the people who have filed for bankruptcy not make the same mistakes twice. Judges do not look favorably upon people who are coming to them asking for a second or third chance to clear their finances. There is a reason why so many states are requiring financial planning classes as a part of the bankruptcy process.