Have you declared bankruptcy? If you have, you may not be in any hurry to admit it. Bankruptcy is often looked down upon. People see it as a sign that you’ve failed, but that’s not necessarily the case. There are many reasons why bankruptcy is nothing to be embarrassed about. Here are a few of them.
It’s the Responsible Path to Take
If you’re struggling financially for whatever reason, bankruptcy is the tool designed to help you begin recovering. That’s why it exists. You shouldn’t wait until you’ve destroyed your credit and have nothing left. It’s not failure to say that you’re in over your head and need assistance. In fact, it’s a very responsible and mature thing to do. If bankruptcy wasn’t a legal option to save your finances, it wouldn’t exist.
Many People Declare Bankruptcy
While bankruptcy has been in decline since 2010, there is still a large number of them filed every year. In 2018, over 750,000 people declared bankruptcy. There’s no reason to be embarrassed about it since you’re by far not the only person using bankruptcy as a means to get back on your feet.
It’s Not a Sign of Financial Failure
Many people who make use of bankruptcy aren’t doing so because they’ve been financially irresponsible. Instead, they’re doing so due to unexpected costs that they simply couldn’t have anticipated. For example, if you have a major medical emergency that isn’t fully covered by insurance, you may find yourself owing thousands of dollars. You may have unexpectedly lost your job and, despite searching, haven’t found a new one yet. The only way out from the accumulated debt may be bankruptcy.
It’s Often the Best Option
If you’re drowning in debt, regardless of how you got there, you want to find the best way out. You’re already behind on bills, and your credit has likely taken a hit. You could take out a large loan at a high interest rate (due to being behind on bills), but that rarely works. Usually, it only adds to the debt. You could ask family members or friends for a personal loan, but that may simply not be an option. It’s also a quick way to damage a relationship if you find that you cannot make your agreed-upon payments.
Bankruptcy will help you begin rebuilding your credit, and it won’t leave you with nothing. While it’s true you may have to sell some assets, depending on the type of bankruptcy you file, you won’t lose your home, your car, or other necessary items.
If you’re ready to consider bankruptcy, contact the office of Michael F. Kanzer & Associates for a free consultation.