Bankruptcy levels are almost at their highest levels. Last year, nearly 26000 battling Australians went bankrupt.
Looking at this figure, it’s easy to forget that there are human stories behind this startling number. It’s a desperate story of a dream turning into a financial nightmare. It doesn’t have a happy ending, and leaves in its wake thousands of lives affected and unaccounted for.
Of the thousands of desperate people that felt they had no other choice but to declare bankruptcy, how many didn’t need to? How many people after being guided in the right way could have turned their situation around? Were these people given the opportunity to turn their situation around?
The answer to these questions can never be known.
What is certain though is that, if these 26000 people were offered an alternative to bankruptcy that meant they could settle their debts at an affordable and sustainable rate, most would grasp this opportunity with both hands as tightly as they can.
Without exception, I have never spoken to anyone who thought that going bankrupt was the best thing they had ever done and if anybody feels this way they’re kidding themselves. The reason for this is that most people have a sense of pride and believe that walking away from a (financial) situation is un-Australian.
Of course bankruptcy is an appropriate situation for those that need it, all I’m saying is that it should be considered the last resort and only after every other option has been exhausted.
So how is it that there are so many people going bankrupt without properly considering their options? Could it be there is an interest group or organisation actively promoting bankruptcy before other reasonable options are considered?
This may certainly be the case, however to properly analyse this one would have to look at the 26000 people that filed debtor’s petitions to look at who (if anyone) assisted them. If this investigation concludes that there is a well intentioned but ill equipped, interest group helping these poor, desperate individuals submit their bankruptcy papers; perhaps there should be focused attention on whether these people are given all their options.
The point of this article is not to open a can of worms – moreover the point is to hopefully draw attention to the fact there are people out there that have gone bankrupt, without adequate consideration for the alternatives.
People should know that there are alternatives to bankruptcy and ways to get out of debt at an affordable and sustainable rate. This said, the alternatives are not an easy way out and there is no quick fix. The alternatives take a lot of hard work and discipline, but if you are committed and willing there are ways to avoid bankruptcy.
