It can be hard to know that you’ve had to turn to bankruptcy, but that doesn’t mean that you’ve failed. While bankruptcy is still somewhat taboo to talk about, the truth is that many people go through it. Out of all the households in America, around 14% owe more than they own, according to the Federal Reserve Bank of New York. That’s around 17 million households that may find themselves in similar situations to yours.
Around 752,160 households file for bankruptcy every year. When you see numbers like that, it makes it much more acceptable, and it is. Bankruptcy is designed to help you get your finances in order and to give you the fresh start that you need.
Should you be ashamed to go bankrupt?
Absolutely not. There are dozens of reasons why you could be struggling with money, from having to deal with a life-changing medical diagnosis to losing a job when you have too much debt to repay. You may have been living paycheck to paycheck and had a sudden expense that pushed you over the edge.
While bankruptcy is a modern term, it is a concept that dates back to the Bible. Just as the Old Testament, in Deuteronomy 15:2, thought to give debtors a fresh start when it advocated cancelling outstanding loans every seventh year, modern bankruptcy laws, too, provide relief for debtors.
Bankruptcy is there as a safety net, and you may be able to use it to right your situation. There’s no reason to struggle when there are options available to you.
There is nothing wrong with seeking a bankruptcy when you need it. Your attorney will be able to talk to you about different options that could help, such as debt reduction techniques or consolidation plans, but if bankruptcy is what’s best, they’ll be sure to help you with your application and give you more information as you move forward.