It’s true that many people feel embarrassed about filing for bankruptcy, but we think this is primarily because they don’t fully understand it. There are a lot of stereotypes about what it is, what it involves, and whether or not it’s a good idea. Many people view bankruptcy as “the end,” when it’s really a new beginning.
In fact, bankruptcy was specifically designed to help people get back on their feet after financial hardship. The bankruptcy system was put in place by Congress as a safety net to catch people who have fallen and need help getting back up. You shouldn’t be ashamed about bankruptcy because it means you’re taking action to get back on track.
The good side of bankruptcy; nothing to be ashamed about
Bankruptcy is something that can happen to anybody for reasons beyond their control. Financial upheavals such as job loss, high medical bills, divorce, or small business failure can often lead to bankruptcy.
But the negative association many people having when it comes to filing for bankruptcy often makes them feel ashamed or embarrassed. To the point that they might not be willing to do what needs to be done. But the truth is that if you consider an actual cost-benefit analysis before filing for bankruptcy, you may discover what many others before you have realized: bankruptcy is worth it.
You may actually find out that some of your friends or family members have filed also. It’s not something people talk about much, but some estimates say that one in 10 adults in the United States will file for bankruptcy at some point in their lives.
And while you should be aware that creditors will find out about your bankruptcy filing, it is not very likely that other people will. A bankruptcy case is a public matter, so there will be a public record of it, but most people don’t spend their time looking to see who has filed for bankruptcy.
The financial side of things can potentially affect you a little more. After you file for bankruptcy, your credit score does typically go down, but how much it goes down depends on exactly where you started. Credit scores after bankruptcy often settle at around 550, but you can absolutely bring that number back up. While it may be more difficult to obtain a home or car loan for a while, this will not be the case permanently if you take the experience of bankruptcy, learn from it, and start doing better.
That’s one of the big positives. After going through a bankruptcy, most people never want to experience it again. It discourages you from getting yourself into so much debt again and from mismanaging your money if those scenarios have led to your situation. In cases that involve factors beyond your control, it may show you the importance of creating and contributing regularly to an emergency fund.
Regardless of your specific situation, it’s always important to look at things objectively and weigh the pros and cons of a bankruptcy case. This is something to attorneys at Tom Bible Law are experienced in helping clients with. In the end, we do often decide that the benefits outweigh the costs. We try to help people see that filing for bankruptcy is a chance to start over, not the end of their life.
Discover Tom Bible Law in Chattanooga, TN
If you are struggling with excessive debt and looking for a sound solution, the attorneys at Tom Bible Law, can help you explore your legal options. We have helped numerous clients from Chattanooga and throughout Tennessee and North Georgia achieve their debt relief goals by guiding them through the bankruptcy process. We work with every client personally, giving each and every bankruptcy case the time and attention it needs. We understand the financial pressures our clients are facing and work to resolve their debt problems in a favorable, cost-effective manner. Our bankruptcy lawyers have more than 80 years combined experience and are here to help. Call us today at (423) 690-7712 or drop us a note here.