There Will Always Be Bankruptcy

Close up of Washington's Eye on Dollar BillThere will always be debt, and there will always be bankruptcies. If you look at a list of famous bankruptcies you will note that they include presidents, the largest most highly respected accounting firms, law firms, religious leaders, and bankers.

Bankruptcy, like a car accident, could be easily avoided if everyone knew it was about to occur.

A world without bankruptcy would be a world in which the recessions and depressions of the 1930s and 2008 would have been easily predicted. This strange world would be filled with companies that never expanded or contracted and in which there was always perfect hiring and perfect bosses so that no one was ever fired. This strange world would also be populated by eternally healthy people who never had injuries or accidents of any kind preventing them from earning a living.

For the vast majority of my clients, the possibility of bankruptcy was always distant until they got that pink slip, slipped disc, or opened up that restaurant.

There will always be financial misfortune and as part of the fabric of our adventurous society.

Don’t be too superior – it could happen to you. On average every household files a bankruptcy once in its lifetime (2005 rates).

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