Your Last Dime The Credit Industry “Perception of Others" Campaign

By: R.A. Monaco
May 18, 2011

When it comes to the subject of bankruptcy, perceptions matter to troubled debtors far more than reflected in public debate. A common argument heard by credit industry lobbyists centers on dogmatic concerns of moral slackness that causes people, who they claim can repay their debts, to seek the supposed, “too-easy” protection of bankruptcy.

Credit industry public relations campaigns over the past decade have aimed at driving home a self serving moral message that is exploitive and completely unsympathetic to families with dying children, years of underemployment and joblessness. By making credit available to those in terrible financial distresses their message is clear, no need to face the horrors of bankruptcy, just refinance your way back to economic security. The rise in debt management plans and other borrow-to-repay schemes is solid evidence that the industry continues to exploit those already in financial trouble.

According to the Stanford University Law Review, when it comes to bankruptcy, it is unlikely that Americans feel less shame today than in the past. Perhaps modern Americans have read about public figures like Kim Basinger, the rock group TLC, former Texas Governor John Connally and most recently, Ruben Hinojosa, a Texas congressman that serves on the House Financial Services Committee who last week filed for bankruptcy. Apparently however, dozens of celebrity examples have not changed the perceived shame factor enough to help many who are most in need.

Too many financially troubled debtors unnecessarily decide not to seek the relief they are entitled to under the bankruptcy code. Many suffer depression and unwarranted distresses from the financial pressure that results. Far more often than realized, troubled debtor's reasons for not seeking bankruptcy protection are concealed and rarely articulated.

A recent assessment according, to Gallup, shows that Americans current attitudes are more downbeat overall than in February 2008. Moreover, that one in four that are unemployed are in financial distress. The stigma, embarrassment and concerns about the likelihood that a bankruptcy filing would become known to at least some family members, co-workers, friends and neighbors is affecting the health of many. Data from a recent university study shows that bankrupt debtors and their families are in more financial trouble than their counterparts of ten or twenty years ago. Worse, the data suggests that families may be more reluctant to consider bankruptcy than ever before.

The alternative is to learn what your real options are through a discrete legal evaluation. A decision that can empower your choice, clarify options, and reduce the stresses that are far too often unnecessary and undeserved.