Three Ways We Could Reduce The Incidence of Bankruptcy

July 22, 2011 by  Filed under: Bankruptcy 

It is well known today that the social stigma associated with bankruptcy is a thing of the past. The challenge is that many people who could really benefit from the services of a bankruptcy expert, leave it until is is often too late to recover. Given that this is the situation and the challenge is clear, how can we encourage people with serious debt problems to be more proactive and seek help before the situation is not recoverable and declaring bankruptcy is the only option?

So, what are the top three ways to overcome these problems? We answer that question below…

Firstly, Governments need to communicate the benefits of the reforms they have introduced in recent years more effective way. Most Governments today have programs to help people with serious debt situations and the approach is very supportive. Although many of the reforms have been really positive but people are simply not aware of them.

Secondly, we all have an obligation to look out for our friends. When we know a friend is experiencing financial difficulty, we can encourage them to seek help and learn more about what help is available to them. After all, when we are ill, we see a doctor. When our marriage is at breaking point we might see a marriage guidance councilor so why not see a bankruptcy expert when you are in financial trouble.

Finally, an ounce of prevention can go a long way towards avoiding financial hardship. I am amazed that more is not taught about basic financial management in schools. We learn about mathematics, science, geography, English etc but we don’t learn the basics about managing money. Apparently that is left to parents who themselves are often ill informed.

Many kids get credit cards soon after leaving school and if they are not careful, can soon find themselves unable to pay back their debt. In fact, bankruptcy statistics in Australia show that people who go bankrupt often have high outstanding balances on credit cards. So learning about how to use a credit card and the associated risks might be a good start

In summary, it is well understood that society is not as harsh in its treatment of bankruptcy as it once was. However, the complication is that people are ill informed about the benefits of seeing an expert.. There are three ways we have discussed to overcome this problem, first, our Governments have an obligation to provide information and education to people to help them understand what help is available. second, we need to look out for each other and finally, let’s encourage our politicians to include basic money management courses in schools as a preventative measure.

Discover how one can learn more about declaring bankruptcy by visiting our bankruptcy website.

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