Consider a story told by a bankruptcy attorney. If a consumer went to his or her bank the same way that the congress goes to the American People in the form of currency and borrowing, the family would likely be turned around by the banker over and over again. The very fact that a family would visit their bank or other lender and ask for more credit once they’re already far too over-extended is quite absurd.
So what should a family do if they are in a desperate situation financially and need a fresh start to get their family back on track again? Certainly there are a few options, one of which is bankruptcy, but certainly it is not the only option. For a person considering bankruptcy, it’s important to realize that most of the time, there is another way out prior to getting to the point where bankruptcy is located. Somewhere on a path that ends in a bankruptcy refresh, a family or a head of family, or certainly even any single person who contemplates their finances can read the writing on the wall about things being bad. But the question then becomes one of how did they get there and can they figure out how to get back into the light as opposed to being under the dark and heavy weight of burdensome debt.
So how do you prevent bankruptcy? To prevent bankruptcy, often the willpower of good financial decision making is needed. But more than that can also be required in some situations. You see, most people think that a person chooses to get into a situation that eventually leads to bankruptcy. As a matter of convenience, it is easier for a person to look at those filing bankruptcy and to assume that the person chose a lifestyle which ended in bankruptcy. But many of these people making such assumptions do not realize that bankruptcy is most commonly caused by medical reasons over any other financial hardship.
That said, certainly those people who find themselves in that situation could have had insurance, or some safety net which could help them. Yes, this is the case, but not always. So when you consider your options, make sure that throughout your life you choose to save for a rainy day. Heck, whether a person has not filed, or has filed bankruptcy. It is paramount to save for a rainy day!