With the tough economic climate the US is in, there has been a large increase in the number of bankruptcies being filed. In fact, more than 1.5 million people each year file bankruptcy and many more are in a position where they really should consider it. Taking into account the sagging economy, we are fortunate that there is no more debtors prison here in our country. Not long ago there was an article describing how foreigners are fleeing Dubai to avoid debtor’s prison which still exists in that country. Dubai’s economy is heavily reliant on the real estate market which is also in a downward spiral as is our own. It is reported that there are thousands of cars being abandoned at the Dubai Airport which were left behind by fleeing debt ridden foreigners. This is certainly a dismal sign of the times.
It certainly makes a person appreciate being able to file for bankruptcy. The Supreme Court of The United states stated, “Bankruptcy was designed to relieve the honest debtor from the weight of indebtedness which has become oppressive and to permit him to have a fresh start in life, freed from the obligation and responsibilities which may have resulted from… misfortunes.” This fresh start allows many Americans the ability to live without the fear and anxiety of living paycheck to paycheck and possibly even facing the dreaded debtor’s prison that exists in other parts of the world. Debtors prison was abolished here in the US on the federal level back in 1833 and the rest of the states followed suit.
Filing Bankruptcy is not something to be ashamed of or feared, it is instead a valuable part of the American legal system. Bankruptcy helps good people deal with overwhelming financial circumstances and gives them the opportunity to gain financial freedom and a new start at being debt free.