Forget the negative connotations regarding bankruptcy. This isn’t a moral decision or a question of right and wrong. Bankruptcy is a legal and financial tool that the government offers to help consumers and businesses that are facing extreme amounts of debt.
It’s a bit confusing to see bankruptcy get these negative connotations when it is actually a very positive option. It’s a chance for a fresh start. It’s a way to eliminate past mistakes or issues that are completely out of your control. It’s a way to take charge of your financial future and make it a positive one. That’s how you should look at it.
Are bankruptcy myths to blame?
One reason for the negative view that some carry of bankruptcy could be that they buy into common myths. For instance, many people tell you that bankruptcy ruins your credit forever and that you’ll never get a loan again. This is simply not true. You can absolutely get credit options, some of which are available as soon as your case is complete, and you can work hard to repair your score. It takes time, but nothing is forever.
Perhaps the biggest issue, though, is that people tend to blame the person who filed, as if it is their fault. In many cases, they had nothing to do with it. For instance, medical bills are one of the major reasons that people file. You may have made fine, rational choices with your money for your entire life, only to randomly get an illness that leaves you with massive debt. This illness could drain your savings, make your debt look unaffordable and even cost you your career. Clearly, this is not your fault, and bankruptcy can help.
Considering all of your options
The real view of bankruptcy should be positive, focused on how a fresh start can change your life. Make sure you know how to utilize all of the legal options that you have. There are always steps you can take to focus on a brighter future.