People sometimes struggle with bankruptcy because they believe that their situation is their own fault. They think that they’ve gotten themselves into financial trouble and that they’ve made a mistake. They may even feel ashamed to tell people that they know that they’re considering filing for bankruptcy because they think they should just pay off their debts – they just don’t know how to do it.
If you have been struggling with this mental block, please know that it is common. It is also inaccurate. The truth is that bankruptcy is often not your fault, and there should be no question about using the financial tools that have been provided for you to navigate the landscape that you find yourself in. Bankruptcy is just another tool you have at your disposal for times when it would be beneficial.
Why does bankruptcy happen?
The thing to remember is that bankruptcy often happens due to things you can’t control. Medical debt is one of the top reasons that people file for bankruptcy, but you don’t choose to have a heart attack or be diagnosed with cancer. These things just happen to you and you respond as well as you can, but the expensive healthcare system in the United States means that treatment may be financially prohibitive. Bankruptcy can help you overcome those hurdles.
Job loss is another major reason for bankruptcy. But, lately, many companies have been downsizing. They are letting go of excellent workers who haven’t made any mistakes just to reduce the size of the company itself. Even if you lost your job and that led to bankruptcy, you don’t have to blame yourself for that loss.
At the end of the day, bankruptcy can be a beneficial tool for many people. Be sure you know what steps to take if you’re considering it.