by Richard Prior
Staff Writer
People caught up in bankruptcy may be divided into three groups: the good, the bad and the merely misguided.
Some may be more sympathetic than others, but they all need help during what will probably be the most trying time of their lives, said Dr. Gary Buffone.
“You’re probably the only counselor these people end up seeing,” he told his audience. “Try to take some extra time with them.”
Buffone — a clinical psychologist with Byron Harless, Reynolds, Kalkines & Buffone — examined the “human element of bankruptcy” during his talk Thursday to the Jacksonville Bankruptcy Bar Association.
The “good,” he said, are generally those clients who have some savings but are not well protected against unexpected, but common, upheavals — divorce, disease, natural disaster.
The “bad” are the “chronically irresponsible,” quite often “antisocial” types who always seem to be moving from one predicament to the next.
The “merely misguided,” because of poor judgment, open themselves up to the shifting fortunes that everyone contends with.
“They’ve had some complicity in the problems they’re now facing,” Buffone said.
The chance that a person will have to deal with bankruptcy is alarmingly high now. Approximately 12,000 Jacksonville residents filed for bankruptcy during the past year, said Jay Brown, JBBA president and an attorney with Akerman Senterfitt. More than 1.5 million across the country filed in the last year.
When their attorneys first see them, they’re usually in shock and denial, Buffone said. They’re probably anxious and may be depressed.
“They do recover over time, though it may take a period of several weeks or several months,” he said. “It may not be pretty, but it will happen.”
Those who rebound better and quicker share certain traits.
They have formed good relationships and have solid social support.
“They’re not passive; they’re doers,” Buffone said. They get busy and follow through with recommendations. And they’re more optimistic in outlook. They feel they have some control over their lives.”
Buffone recommended several steps lawyers could take to help their clients rebound from bankruptcy.
The first thing is to try calming the client, getting them “stabilized and refocused”:
“Start by putting things in some perspective. Realize that this setback is just one more bump in the road we call life, and, no matter how uncomfortable you may feel, it’s only temporary.”
Step two is easier for some than others, Buffone said.
“Don’t let the embarrassment you feel over your situation get in the way of talking about it with others,” he said.
While reaching out, though, clients should be discouraged from seeking money or financial advice from friends and family.
“That’s what banks and financial advisers are for,” he said.
Clients should assess their situation for a “hard, objective look” at their financial condition.
“Avoid making any major decisions that aren’t absolutely necessary,” he said. “And, at the same time, try to maintain your normal routines as much as possible.”
They should seek help from trusted financial advisers, brokers, accountants, attorneys or financial planners, but “be cautious of anyone offering a quick fix to your problem.”
Step four, following through on a plan of action, “can be the “hardest step for some.”
“Sometimes, people get stuck, they freeze up,” Buffone said. “They took steps that were too big.
“If this happens, start identifying and taking smaller steps toward your larger goals for financial recovery.”
The last step is also one of the more difficult ones to face, he said.
“Once the worst of the crisis is over, and you’re well on the road to recovery,” Buffone said, “take some time and reflect on the lessons learned from your experience.
“In some ways, this is the most important step of all. Otherwise, you may find history repeating itself.”