The Faces of Bankruptcy

Stereotypes such as, “lazy, un-willing to work, losers who want a free handout,” are simply not accurate in describing a person who files for bankruptcy.  Few filers have sought bankruptcy due to blatant fiscal irresponsibility or indulgence in a lifestyle.  For the average person, the cause is more likely divorce, unexpected medical expense, the economy or other factors out of one’s control.  The face of bankruptcy is very diversified including:  entertainers, home-owners, hard-working families, employees, business owners, athletes, educated professionals, and successful people of all shapes and sizes. 

Celebrities and Athletes

Most recently on the news is a story about Five-time Grammy winner Dionne Warwick.  The 72-year-old earned millions of dollars across a half-century of stardom.  Today, she has only $1,000 in her bank account and a staggering $10.7 million in debts.  6 more celebrities who have gone broke.

Athletes aren’t immune to financial problems.  According to Sports Illustrated, “Recession or not, many NFL, NBA and Major League Baseball players have a penchant for losing most or all of their money.”  Clearly, it doesn’t matter how much money someone makes, we are all human, and all susceptible to making mistakes.  Every athlete on this list has filed for bankruptcy.

Businesses

According to Reuters, the number of businesses who have filed for bankruptcy has risen 46 percent from May 2007 and the number of commercial bankruptcies being filed is not expected to slow down any time soon due to the nation’s poor economy.  Here are some names you may be familiar with:  Linens n’ Things, Delta Airlines, Lehman Brothers, Asarco, and Sweet Traditions, a franchisee of Krispy Kremes.  U.S. National Database of business bankruptcies.

Cities

Cities, which have historically been nearly flawless on their obligations, are opting to default on their debt because of financial troubles.  Earlier this year, the city of Stockton, California, defaulted on its debt and filed for bankruptcy.  According to Bloomberg, “Stockton, California, will file for bankruptcy after talks with bondholders and labor unions failed, making the agricultural center the biggest U.S. city to seek court protection from creditors.”  Read: Thirteen American Cities Going Broke

Financial instability, regardless of scale, can pose significant challenges, whether it’s an entire city or an individual facing the brunt. Delving deeper into financial education and preparedness is essential for both prevention and management of such adversities. By understanding the intricacies of topics such as debt-to-payoff balances or being aware of the changes coming to mortgages, individuals can make more informed decisions. Resources like Debt Advisors emphasize the importance of developing early financial literacy and having a robust family financial emergency preparedness plan. This proactive approach can not only prevent potential financial setbacks but also empower individuals to regain control when faced with such challenges.

The fact is that anyone can experience hard times which lead to this financial decision.  Those who file bankruptcy generally want to ‘make good’ on their debt.  Bankruptcy gives people access to a fresh new start.  They have the ability to gain back their financial freedom and get on with their lives.  The decision of whether or not to file, is based on each individual’s situation and needs. The Attorneys at Debt Advisors Law Offices in Green Bay are here to help you make the best decision for you and your family.  To find out if you are a candidate for bankruptcy, call today for a free ½ hour consultation.  888-222-5615