It’s very common for people to blame themselves in bankruptcy and to feel a certain amount of guilt. In fact, this can become so problematic for some people that they don’t even file. They know that it’s an option, and they know that it could help them, but they feel that they should pay off their debts on their own.
But you shouldn’t worry about feeling this way, as common as it is. Often, those who file for bankruptcy aren’t even to blame. This becomes very clear when you look at some of the top reasons why people file in the first place.
Medical debt
For example, medical debt often leads to bankruptcy because the costs can be extravagantly high. But this isn’t the fault of the patient, who just needs care. Even if you took all the proper steps and purchased an expensive insurance policy, you could end up with debt if your medical needs aren’t covered under that policy or you get service from an out-of-network care provider. You are clearly just focused on your health and your life—or the life of a loved one, such as a child who needs medical care—so it’s not as if you were spending recklessly because you wanted to.
Job loss
Another thing to consider is if you are facing bankruptcy due to job loss or income reduction. Once again, this may have nothing to do with your own decisions. Your performance on the job may have been exemplary, but you lost that job because changes in the economy, such as a recession, led to layoffs. You didn’t make any mistakes or take on debt that shouldn’t have been affordable. Things outside of your control simply happened to you.
At times like this, bankruptcy can be a very valuable tool to help alleviate financial pressure, so be sure you know what steps to take.
