“I don’t want to be here”, “I never
would have believed in million years that I’d be filing bankruptcy” or
“I can’t believe this is happening to me…”
These are all statements that we
hear from most, if not all, of our new bankruptcy clients. Bewilderment, dismay
and disbelief are all common emotions that are associated with the majority of
bankruptcy filings that we have seen in the past several years. Probably the
main reason for this set of emotions is that most of the filings lately are
driven by external factors such as loss of income or increased interest rates,
and not be the actions of the client. This shock of having to consider filing
bankruptcy is also often coupled with a feeling that although the world economy
is bad, that the client is alone in their trouble.
Client’s fears and embarrassment
about speaking to others regarding their financial situation often delays or
prevents them from contacting a bankruptcy attorney, which can compound
problems. Overcoming fears, reluctance and other psychological hurdles is
usually a large part of the initial consultation. One of the best ways that we
have found to address the client’s feelings of being alone in bad financial
situation is through the use of filing statistics and celebrity bankruptcy
filers. Abraham Lincoln is pretty good company.
According to the US Courts website
(www.uscourts.gov) bankruptcy filings for
2009 were 31.9% higher than 2008. This number often doesn’t resonate with
clients, thus putting it into the perspective that in 2008 and 2009 in the
Northern District of Georgia, (where Herman & Russo is located) that there
were over 126,000 bankruptcies filed. This figure is equivalent to the
population of Ft. Collins, CO, or closer to home, roughly that of Savannah, GA
(pop.130,000).
Providing a frame of reference as
to how many people have filed for bankruptcy is only part of the challenge in
overcoming a client’s feeling of being alone. Another helpful tool is
explaining that it is partly the role of the attorney that they choose is to
assist them through the process and that they are alongside them in this
unfamiliar territory as well as being their advocate. This is where extensive
experience in the practice of bankruptcy is very reassuring.
The last piece of the puzzle for
putting people at ease regarding feeling alone in bankruptcy often doesn’t
occur until the actual Meeting of Creditors hearing, also known as a “341
hearing”. In most districts with the dramatic increase of filings, hearing
rooms are packed or overflowing. Upon seeing a swarm of people at the 341
Hearing, any last feelings of being alone are often swept away.
Unfortunately, there are no quick
and easy ways to dispense with the fear of being alone in the bankruptcy
process. The reality of increased filings nationwide, the expanding
demographics of bankruptcy filers, and crowded hearing rooms are all objective
pieces of information, but ultimately a good relationship between the client
and attorney is the foundation for putting a lot of fears in the bankruptcy
process to rest.
By, David A. Russo, Herman &
Russo, P.C.