Contact Bob Today

Colorado Springs Bankruptcy ABC’s: “K” is for “Kids”

k30In this post I’ll discuss one of the best reasons for people to file for bankruptcy:  their children, the “kids”.

Oftentimes in my practice as a Colorado Springs Bankruptcy Attorney, I’ll meet with a couple who just don’t know what they should do about their overwhelming debt.  Should they file a Chapter 7 bankruptcy or not?  Just about nobody wants to file for bankruptcy. We’re told from the time that we’re little kids that it’s about the worst thing you can do.

Here’s what’s really baffling:  No one batted an eye when American Airlines filed for bankruptcy a couple of weeks ago.  For them it was a “business decision” that will allow them to eliminate some contracts and debt so that they can “emerge” from bankruptcy with a fresh start as a stronger company.  It makes perfect business sense for American Airlines.  There’s no moral stigma attached to their decision.

Yet when Colorado Springs couples come to see me about their overwhelming financial issues, they often fear the stigma of failure for doing the same thing.  They incurred the debts.  They’ve always paid their debts.  But they realize it will be thirty years or more before all of their debts are extinguished — assuming that they incur no more debt and don’t fall victim to some medical or other financial catastrophe.

In the meantime, they’ve put away exactly zero dollars for the education of their young children. They want their kids to go to college.  They know they should be setting up a college savings plan.  But the money’s just not there.  It’s going to pay Discover, Capital One, etc.

This young couple with young kids has obligations to both their credit card providers and their children.  They can either pay Citibank or put some money away so their kids will have a better life. They just don’t have enough money to do both.

I encourage them to take the long view.  Deciding whether or not to file for bankruptcy should be a “business” decision fro them, just like it was for American Airlines. Filing for bankruptcy and getting rid of their credit card debt will allow them to emerge form bankruptcy with a fresh start as a stronger family.

Something else to consider: American Airlines got into financial trouble even though it is run by highly educated people.  You just know there are Ivy League MBA’s on their roster.  Yet they found themselves needing to file for bankruptcy.  And nobody suggests its any kind of ethical or moral failure.

Most of my clients have not had the benefit of a college education, much less an Ivy League masters-level education in finance.  Should they feel bad for getting into financial trouble? Maybe a little.  Should it prevent them from taking the necessary steps to get out of financial trouble? Not if it’s going to end up hurting their kids in the long run. As parents they have a duty to do their best to make their childrens’ lives better.  For me, that’s a pretty good reason to take the long view.

Other non-Colorado Springs Bankruptcy Attorneys have also written about bankruptcy “K” words:

Keep          Keeping your Business          Keys          Knowledge

Photo credit: TooFarNorth

8 Responses to Colorado Springs Bankruptcy ABC’s: “K” is for “Kids”
  1. [...] K is for Kids [...]

  2. [...] K is for subsection K as in 401k. K is for Knowledge. K is for Keys. K is for Keep. K is for Keeping your business. K is for Kids. [...]

  3. [...] Cathy Moran Knowledge – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Kids – Colorado Springs Bankruptcy Lawyer Bob Doig Keeping your business – Dorota Trzeciecka Bankruptcy Blog 401k – Marin County [...]

  4. Debt Settlement Money Back Guarantee
    January 18, 2012 | 11:31 am

    [...] Colorado Springs Bankruptcy Attorney Bob Doig claims K is for Kids. [...]

  5. [...]     Dorota Trzeciecka Bankruptcy Blog Keys    New York Bankruptcy Lawyer, Jay S. Fleischman Kids    Colorado Springs Bankruptcy Attorney Bob Doig Knowledge    Omaha and Lincoln, Nebraska [...]

  6. [...] Kids – Colorado Springs Bankruptcy Attorney Bob Doig    [...]

  7. Student Loan Buying Knowledge?
    September 25, 2012 | 9:05 am

    [...] New York Bankruptcy Lawyer, Jay S. Fleischman Kids                   Colorado Springs Bankruptcy Attorney Bob Doig Knowledge      Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell [...]

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL http://springsbankruptcylaw.com/colorado-springs-bankruptcy-abcs-k-for-kids/trackback/
If you need help, please don't wait for things to just get worse.
Call me at 719 227-8787 or just fill in the form.
I'll get back to you right away.
  • Your personal information will remain secure. We won't share your info with anyone. Ever.
SpringsBankruptcyLaw.com is provided as a public service by Bob Doig, a bankruptcy lawyer in Colorado Springs, Colorado. If you want to discuss a specific issue, ask a question, or even complain about something, please don't hesitate to contact me:

Bob Doig
Robert J. Doig, Attorney at Law
2985 Broadmoor Valley Road
Colorado Springs, CO 80906
719 227-8787 Office
719 325-8355 Fax
Info@SpringsBankruptcy.com
HTML/PHP
Robert James Doig LLC is a BBB Accredited Business. Click for the BBB Business Review of this Attorneys - Bankruptcy in Colorado Springs CO