There are more children listed in their parents' bankruptcy filings than will sign up for Little League, adopt a dog from a humane society, or get braces on their teeth. Just ask Elizabeth Warren, professor of law at Harvard and now a Massachusetts senator. Personal consumer bankruptcy is similar to divorce, she points out, in terms of emotional damage that can be caused for children.
While Elizabeth Warren has always been a thought leader in the field of personal bankruptcy, I must say, as an Indiana bankruptcy lawyer for the past twenty-six and a half years, I think what can be most damaging for children is when their parents DON'T file for bankruptcy when they really should do exactly that. I agree with Warren's observation in the book The Two Income Trap (which Warren wrote with her daughter Emilia Warren Tyagi) that the majority of families filing bankruptcy have not found themselves in bankruptcy court because of irresponsibility or dishonesty. They may have stretched themselves to purchase a home in a friendly neighborhood or in an excellent school district. Later on, financial setbacks such as unemployment, illness, or divorce caused the family to go "belly-up".
Divorce and bankruptcy are two things I happen to know a lot about, because many of the clients of our five Zuckerberg bankruptcy law offices happen to be single moms. And fewer than half of those single moms receive the child support they were awarded. For those single moms, as one of our Richmond, Indiana bankruptcy lawyers realizes, divorce has been nothing less than a financial disaster.
Needless to say, all of us good Indiana bankruptcy lawyers devote a lot of time just listening and offering moral support to families going throught the Indiana bankruptcy process. I absolutely agree with something Elizabeth Warren said:
"We have found that the best way to help children go through bankruptcy or any financial difficulty in a family is to involve the whole family with honesty…The parents should be positive and tell the children that the family has a plan. Talking to a qualified bankruptcy attorney, getting professional advice, knowing all the options available is the first step to financial recovery," she concludes.
Amen to that!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg