Your Bank Is Not A Family Member Or A Friend

January 28, 2013
By Frank H. Coxwell on January 28, 2013 11:37 AM |

Again and again I meet people who have loans or other debts through their bank but they do not want to file these debts as a part of their bankruptcy case. "I have banked with them for years," they say. Then they explain to me that they are great friends with the bank and how the bank is just like a member of the family.
What they don't understand is that banks spend millions in advertising to make you believe they are your friend and extended member of the family. But the reality is that your bank sees you as a business transaction. One that they intend to profit from. It doesn't matter that you made every payment on time in the past or that you've paid off previous loans. This is a business relationship. The bank is in business to make money. They will stop providing you credit the minute you look like a credit risk. It's not personal. They are looking after their best interests as you should be looking after yours.
You don't believe me? Ask the bank for a loan when times are tough. Sure, the employees that you've known for years at the bank will be nice and act as if they want to help but will more than likely put off the "no" decision on their "corporate office" or some other mysterious decision maker in order to keep up appearances that they are your friend - not the bad guy denying your loan. They want to be your best friend when times are good - why not? Where's the risk in that? But they won't be when you really need them to be. It's just business and nothing more.
Nobody wants to file bankruptcy. But if it is necessary, it should be a business decision and nothing more. Bankruptcy is a financial tool used by individuals and by businesses. It's about financial recovery and protecting yourself, your family, and your property. Once you are again financially stable, you'll be amazed at how willing creditors will be to do business with you again.