The stigma of bankruptcy is a real concern for many consumers. Faced with foreclosure, huge credit card bills, underwater property and a reduction in pay, clients are still hesitant to use the relief afforded by bankruptcy code. Bankruptcy is often a moral dilemma that is eventually overcome by reality of the situation.
The CEO of American Airlines was similarly confronted with this dilemma. It is not uncommon for corporations to restructure under Chapter 11. The dollars and cents of the matter, and the desire to survive support a board’s decision to enter into Chapter 11 reorganization. Gerard J. Arpey of American Airlines believed that he could not morally justify putting his company into bankruptcy, and he resigned saying that bankruptcy was against his way of doing business.
The question becomes this: should a business survive if, because of outside forces, it has to change its way of doing business through reorganization? Sometimes the debt is so overwhelming it is suffocating, but a viable business still exists. The bankruptcy code was put in place, so a reasonable consumer can get help when faced with economic crisis, whether due to their own negligence or outside forces. The bankruptcy code has regulations that prevent abuse of the system.
There should be no shame in using relief that is available because at the end of the day, bankruptcy affords an underwater debtor a way to start with a clean slate, become more financially savvy and be able to once again contribute to the economy in a more positive manner.
LaBovick Law Group, unlike most other bankruptcy attorney West Palm Beach, produces financial end results in regards to bankruptcy, foreclosures, mortgage modification, short sales and more. For more information regarding bankruptcy and the stigma of bankruptcy, please contact our dedicated financial professionals today.