The Constitutional Right to File Bankruptcy

I get a lot of clients in my office who are relieved to be ridding themselves of a lot of debt, but beset with feelings of failure and the vague sense that filing bankruptcy is somehow "wrong."  Frequently a person will say, "I really wish I could pay back these debts.  I know I incurred them and I would pay them if I could, but I just can't do it!  I feel so horrible about filing bankruptcy."

Stop! If you need to file bankruptcy, you need to file bankruptcy.  There is nothing blameworthy about it.  I strongly believe that choosing to file bankruptcy is a smart business decision.  It has nothing whatever to do with what kind of a person you are.  It is simply a frank and honest assessment of your personal financial situation.  If you reach the conclusion that you cannot possibly pay off your debts, then you owe it to yourself and society to file bankruptcy.  Why?  Because if you don't get out from the under those debts they will crush you.  You will suffer wage garnishments, leading to possible loss of your home, transportation, and even your job itself.  You will never be able to save for retirement or college for the kids.  Your ability to purchase goods and services in your surrounding community is vastly diminished or extinguished altogether.  Furthermore, the stress of a debt laden life has a huge negative impact on your health and your relationships.  In summary, a person or family that is slowly dying from out of control debt must get the fresh start or risk becoming a burden on society at large.

The Founding Fathers foresaw that in a capitalist society like ours, there must be a constitutional right to file bankruptcy.  (See for yourself here, fourth line down).  Without it, citizens could suffer their whole lives under crushing debt.  Exercising your constitutional rights is not amoral or in any way wrong.  Do a Google search for "big companies that have filed bankruptcy" and see for yourself that bankruptcy is a business decision embraced by the biggest and most successful companies in the United States.  Why should a person feel badly about making the exact same choice?