Why There Is No Shame In Filing Bankruptcy

March 19th, 2010 by Reed Allmand

Many debtors feels “humiliated” by their financial difficulties and when they file bankruptcy many of them are overcome with feelings of shame and failure. But the truth is that there is no shame in filing bankruptcy.  If anything, debtors should feel proud that they had the guts to face the reality of their situation and file bankruptcy so they can get a fresh financial start. Below are five other reasons why there is no shame in filing bankruptcy:

1. Bankruptcy is a legal and ethical way to discharge debt that you simply cannot pay.  The bankruptcy system was created for debtors just like you who have run into financial difficulties and need a helping hand.
2. Many very famous and successful people and companies have filed bankruptcy.  If it was not for bankruptcy, many of our most accomplished business men and women would not have had the opportunity to have their debts forgiven and try again.
3. Bankruptcy can give your entire family the second chance they deserve to live free of debt-related stress.  Many studies have shown that even children are negatively impacted by debt that lingers unpaid and burdens their family’s finances.  However, by removing that debt burden, bankruptcy also relieves the stress many children experience when their parents are suffering under mountains of debt.
4. Even many lenders have turned to bankruptcy to relieve their own debts, so why should you feel ashamed of filing bankruptcy on your debts which are miniscule in comparison to the debts of large or even small corporations? 
5. Bankruptcy courts will not judge a debtor harshly because he/she made “foolish” decisions with their money.  As long as there was no fraud involved, bankruptcy forgives the debts of both the foolish and the prudent.  And rest assured that even the most prudent of us often need the help of bankruptcy.