The telephone rings in Marilyn Kleinbergs Egg Harbor Township home and she answers with her trademark

exuberance. But just one year prior, a ringing phone wasnt such a welcoming sound. More times than not, Kleinberg let the call go to voice mail. It was usually a creditor, and she just couldnt talk to them anymore. The creditors would start calling at 8am. she recalled. I was ashamed that I was hiding from them...but there was just no option at that time. Kleinberg never thought it would happen to her. But drowning in debt and struggling to hold on to a failing business, she saw no alternative. She filed for bankruptcy a decision that was the hardest, and possibly one of the best, decisions of her life. According to the American Bankruptcy Institute, it is projected that in 2011, 1.6 million Americans will file for bankruptcy. In this economy, you probably know someone who has filed but dont expect them to confide in you. The social stigma of being bankrupt is still going strong. At one time Kleinberg was so financially secure, she rarely worried about money. She had a well-paying job, and her condo was paid in full. If she did use her credit cards, she paid the balance at the end of the month. So what went so wrong in Kleinbergs life that in several years she was drowning in debt and sitting in the office of a bankruptcy lawyer? Already a prominent business professional in her community, Kleinberg knew she had what it takes to make it as a small business owner. So in 2005 she bought a CruiseOne franchise, literally banking on her ability to market the travel experience that she enjoyed so much. Kleinberg consulted a business coach, wrote a business plan and rented office space. Before long, however, she found her initial expenses eating up her bank account. Seeking capital, she took out a Small Business Association loan. In hindsight, that was her biggest mistake. I should NEVER have applied for the SBA loan I was way out of my league. On top of her mounting business debt, Kleinberg accumulated personal debt after meeting a man and building a new life with him and his three children. They renovated his home with money from a home equity loan Kleinberg took on her condo. She felt like she had it all. What Kleinberg did not count on was the severe recession that hit hard in 2008. Many people could barely scrape by, much less plan a cruise vacation. By 2009, it was clear to Marilyn that she was in trouble major financial trouble. In October 2008 the world changed. says Jeffrey B. Saper, Esq, a bankruptcy attorney based in Medford. When Saper first moved his practice to the wealthy suburb in 2004, a friend joked you are crazy - nobody goes bankrupt in Medford. Four years made a world of difference. The dirty little secret nobody talks about as Saper likes to call it, is keeping him very busy. The general public does not know how bad this recession is. Saper believes. He lists the top five causes of bankruptcy to be divorce, loss of income, catastrophic illness, small business failures, and at number five, credit card debt. These are hard-working people this is happening to but they are scared to

death to file because they are afraid of losing everything. However, the options are there. Sometimes it is the best thing you can do to get a fresh start. Saper points out that the average FICO score for a majority of Americans is so low that worries over bankruptcy hurting their credit score are exaggerated. Considering people in such perilous financial shape to consider bankruptcy likely have derogatory information on their credit reports, why worry about your credit? Saper asks. Its horrible anyway. Like Saper, Laura J. Neville, Esq, a bankruptcy attorney based in Mount Laurel, offers free consultations to help people evaluate their current situation to see if bankruptcy is the best choice. Neville finds that when she meets with potential clients, they often calm down and see their situation more clearly. Neville has witnessed more professionals than ever walk through her door. Medical professionals, teachers, federal employees, even military personnel are experiencing something they never planned to experience she says. So why is there such a stigma to personal bankruptcy? After all, it is a right afforded to us by law. Banks and corporations file routinely and we never blink an eye. Lehman Brothers bankruptcy in 2008 was the largest bankruptcy in U.S. history. Some of our most treasured historical figures have filed, including Abraham Lincoln and Ulysses S. Grant. Neville believes it is the right thing to do. It is the morally right thing to do to tell your creditors you are unable to pay your debts. However, not everyone agrees it is the right choice. Carrie Coghill, director of consumer education for FreeScore.com, told us Filing for personal bankruptcy leaves a mark on your record for 10 years, making it almost impossible for a bankrupt person to take out any kind of loan. Dave Ramsey, the popular financial guru of The Dave Ramsey Show with over 4 million listeners (daveramsey.com), has a unique personal perspective. Bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage. Ramsey told us. If you take the thoughtful step backward to get on solid ground instead of looking at the false allure of the quick fix that bankruptcy seems to offer, you will win more quickly and easily. I know from personal experience the pain of bankruptcy, foreclosure, and lawsuits. Been there, done that, got the T-shirt, and it is not worth it. But for Kleinberg, she believes she waited too long. I wish I had done it at least a year earlier. But I hated that I was reneging on a promise to pay. It seemed so wrongso unethical and against all the values I was raised with she recalls. In March 2010, Kleinberg contacted an attorney. By the time she left his office, she knew what she needed to do. It was determined that she would file for Chapter 7 bankruptcy for both personal and business finances. Once I accepted that bankruptcy was my only way out, I never felt ashamed to admit it. In fact, I felt it was my duty to share the experience with others. Now, Kleinberg is a go-to resource for people who have been through it or, are contemplating it, and need someone to confide in. My role is to advise to ability, refer to appropriate resources, and ultimately, allow people permission to go forward. That is why I decided to make my story public, because there is no shame in making mistakes.

If you are currently struggling with overwhelming debt, it may be in your best interest to explore your options. Bankruptcy is not for everyone, particularly those with equity in their property, cautions Neville. But after careful evaluation, if bankruptcy is your only choice, dont feel guilty about exercising your rights. Certainly, dont feel sorry for the banks advises Saper. To learn more about bankruptcy options, visit the American Bankruptcy Institute Consumer Bankruptcy Center at www.consumer.abi.org. To request a free consultation from the attorneys quoted in this article, you can visit Jeffrey B. Saper, Esq at www.jeffreysaperlawoffices.com or Laura J. Neville, Esq at www.njbankruptcy-neville.com. To contact Marilyn Kleinberg if you need support and guidance with a financial crisis, visit her at her website www.eWomenNetwork.com/chapter/snj.