People are sometimes hesitant to file for bankruptcy. They do have overwhelming debt. Bankruptcy could eliminate some of that debt or re-organize it into an affordable monthly payment. But they still don’t want to use this legal process.
The reason they will sometimes give is that they feel bad to file for bankruptcy because they feel like the debt is their own fault. This perspective on bankruptcy has thankfully lessened over the years, but it is still present. It’s important to push back against this notion so that people do not reject legal tools that could be very helpful to them.
After all, if you’re thinking about bankruptcy, the financial issues were probably never your own fault.
The top reasons for bankruptcy
All you have to do is look at some of the top reasons why people go bankrupt every year. For instance, “loss of income” is near the top of the list. But maybe there was just a merger and the company downsized to reduce some of the overlapping positions, causing the person to lose their job. It’s in no way their own fault, but they do need a financial solution.
Another top reason for bankruptcy is medical debt. But once again, people who have high medical bills did not choose to be injured or to get sick. These are just things that happened to them. They also didn’t choose for medical care to be so expensive, even if they have insurance. They may have had no other options.
Considering your options
If you’ve been wavering on whether or not to use bankruptcy, just remember that it can be a very helpful legal process and it is beneficial to look into the options you have.