Reasons Not To Feel Embarrassed About Filing Bankruptcy
Often, bankruptcy is seen as the last option for people struggling with overwhelming debt. Bankruptcy can allow you to discharge your debts (Chapter 7 bankruptcy) or rearrange them and pay your debts over three to five years (Chapter 13 bankruptcy). However, while bankruptcy can offer much-needed financial relief, some people choose not to file bankruptcy because of the stigma and embarrassment associated with it. As bankruptcy attorneys, we meet people all the time who are embarrassed about filing for bankruptcy. Many people are worried about what others, especially their family and friends, will think of them if they find out they filed for bankruptcy. Such a manner of thinking is self-destructive and unnecessary. However, for those who need some convincing, below are some reasons not to feel embarrassed about filing bankruptcy;
- Bankruptcy Is Legal
One of the primary reasons not to feel embarrassed about filing bankruptcy is that bankruptcy is legal. Why feel embarrassed about exercising a legal right? Bankruptcy is a legal and morally acceptable way to get out of debt you are unable to pay. The law recognizes that sometimes people face financial challenges beyond their control. This legal option exists to help people struggling with overwhelming debt regain financial stability. The concept of being trapped in a “Debtor’s Prison” and “indentured servitude” was abolished by the 13th Amendment of the U.S. Constitution. By filing for bankruptcy, you are exercising a legal right, just as many others have done before you.
Bankruptcy law determines whether you qualify for an immediate discharge of your debts under a Chapter 7 case or if you are required to file a Chapter 13 repayment plan. If you need to file a Chapter 13 Bankruptcy case, the federal bankruptcy laws will dictate what the dollar amount you need to pay back to creditors over the course of a repayment plan, which may be significantly less than the total amount you owe.
- You Are Not Alone
You might feel embarrassed to file bankruptcy because you think you’re the only one facing such a situation. You couldn’t be more wrong. According to research, millions of people in the United States have undergone the same process. Statistics suggest that more than 11% of the U.S. population has filed for bankruptcy. Many of those who have filed for bankruptcy have come out of the process stronger and more financially stable.
- Even Famous People Have Been There
While this should not be a reason for filing for bankruptcy, you should know that even the wealthiest and most powerful people use bankruptcy. Celebrities and politicians sometimes use bankruptcy as a legal tool to restructure debt and navigate financial challenges. Even successful people, such as business entrepreneurs, have used bankruptcy strategically to resolve financial difficulties in a manner that allows them to preserve their businesses or wealth instead of losing everything.
- Bankruptcy Is Not a Public Event
You don’t have to tell people you think would mock or judge you that you have filed for bankruptcy. While bankruptcy filings are public records, the odds of a family member or friend discovering it are low unless you choose to share it with them. Only creditors, legal professionals, and others involved in the case will often know about it.
- It Is Actually Responsible
If you are avoiding creditors because you are unable to repay your debts, you’re just running away from the problem instead of facing it head-on. Filing for bankruptcy is a responsible step that allows you to deal with your financial issues directly. Bankruptcy can help you address debt, helping you and your creditors move on.
Contact a Pennsylvania Bankruptcy Attorney Today
If you are struggling with overwhelming debt and are considering bankruptcy, contact our experienced Lehighton & Carbon County bankruptcy attorney today at Adam R. Weaver, Esq., to schedule a consultation. We can help you understand this legal process before you make a decision.
