Don’t Let Financial Problems Dominate Your Life

Pushing back against the bankruptcy stigma 

On Behalf of | Jan 17, 2025 | Bankruptcy |

There is, unfortunately, a stigma around bankruptcy. This issue has persisted for a long time and continues today. People often view bankruptcy as a moral failing or as something that is entirely their fault. They may believe they shouldn’t file for bankruptcy because they feel responsible for their debts.

However, this is an inaccurate way to view bankruptcy. Often, it is not the filer’s fault that they need to file. It is certainly not a moral failing, but rather a legal tool designed to help individuals create a more positive financial future.

Why do people declare bankruptcy?

One way to challenge this stigma is by understanding why people file for bankruptcy in the first place. These reasons are often beyond their control.

For instance, someone may develop a debilitating illness that prevents them from working, resulting in the loss of their income. At the same time, they may accumulate significant medical debt, especially if they don’t have sufficient insurance to cover all their costs.

That individual shouldn’t feel guilty about using bankruptcy to alleviate their debts. They didn’t choose to get sick, nor did they quit their job voluntarily. They also have no control over the high cost of medical care in the United States and are trapped within the same healthcare insurance system as everyone else. In this context, bankruptcy is something that happened to them, not something they caused.

A fresh start

Bankruptcy provides an opportunity for a fresh start. Whether filing for Chapter 7 or Chapter 13, individuals need to understand their options and the steps they can take to move forward.

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