Some people refuse to declare bankruptcy, even though it would help them. They are clearly facing overwhelming debt that they won’t be able to pay off. It’s impacting their ability to spend, and they need to reduce or reorganize their debt to create a successful financial future. They could do this by declaring bankruptcy.
But the reason they refuse to do so is simple: They think that it’s their fault. They blame themselves or feel a sense of shame for being in this situation. They think they need to solve it on their own, and so they don’t view bankruptcy as a viable solution.
Why isn’t this true?
In many cases, though, this is a myth. Bankruptcy isn’t your fault.
For example, medical debt is commonly listed on many consumer bankruptcy filings. But if you’re facing overwhelming medical debt after a disease or an injury, it’s likely not your fault that you were hurt or became sick. The vast expense of healthcare in the United States also isn’t your fault. This is simply the system you live in, and you’re going to prioritize your health over everything else. No one willingly chooses to take on medical debt.
Likewise, many people declare bankruptcy after losing their job. But why did you lose that job? Perhaps the economy entered a recession, so the business you worked for had to downsize. Much like the healthcare system, you have nothing to do with the economy that you live in and are simply trying to do the best you can under these circumstances. But you can’t control whether or not that economy leads to the loss of your job.
These are just a few examples to help show why people should consider bankruptcy without blaming themselves. If you’re in this position, be sure you know what legal options you have.