One key misconception about bankruptcy

On Behalf of | Feb 25, 2023 | Bankruptcy

Many people who are thinking about bankruptcy may not necessarily have all of the right information to make that decision. This is due in part to a negative stigma that bankruptcy sometimes carries, which can be driven by inaccurate information.

For example, there are those who will essentially blame a person who is facing bankruptcy for putting himself or herself in this financial position. This is why they view bankruptcy in a negative light. They see it as an irresponsible individual trying to get out of their debt. But this view is wildly inaccurate and should never factor into your decision.

What are the actual reasons?

The fact of the matter is that many bankruptcy cases are nearly impossible to avoid. The person who is filing for bankruptcy had very little to do with their own financial difficulties. They’re not trying to get out of debt because they did anything wrong. 

For example, one of the top reasons that people cite when they file for bankruptcy is that they have outstanding medical bills. But if someone needs emergency medical care to save their life, even if it’s going to cost millions of dollars, they are still going to get that medical care. It is not their fault that they needed the care, nor is it their fault that they live in a country with such high medical expenses. They simply have to do the best they can under the circumstances, and that may mean using bankruptcy to eliminate prohibitive amounts of debt.

As you think about your financial future, don’t buy into the negative stigmas and perceptions. Just consider the realistic financial tools you have at your disposal.