As we move toward the implementation of the new bankruptcy rules on September 18, 2009, the world is starting to notice. I did a live interview today on BNN – The Business News Network where I explained that under the new rules a bankruptcy may last longer if you have surplus income, which is why more people may file bankruptcy in the next few weeks to avoid the new rules.
The interviewer, Andrew Bell, asked me about the speed that people’s finances are collapsing, and I related the story of the person I met earlier today who had a good job last year, but then both he and his wife got laid off, and they were left with no income. Using debt to survive they got further into debt, and were now facing the prospect of filing bankruptcy.
I was then asked about whether or not people live in denial, and I responded by saying that with credit easy to get, we are tempted to borrow more than we can repay.
We then talked about some common misconceptions about bankruptcy. I said that people worry that everyone will find out; that’s not the case. The bankruptcy appears on your credit report, but unless you are a corporation or you have significant assets, there is no publication in the newspaper or other advertisement of your bankruptcy. The stigma surrounding bankruptcy is less than it used to be, so I’m seeing an increasing number of people going bankrupt now so that by the time the recession ends, hopefully soon, they will be free of their debt and be able to get a fresh start.
My message to the media is the same as my message to everyone I meet: the bankruptcy rules are changing, so you need to know what’s happening now, so that you can decide whether to file now, or to wait. For more information, contact our office and arrange a meeting with one of our professionals, and we’ll help you decide what option is best for you and your family.