Should I File for Bankruptcy?

Source – Most people have a negative perception about bankruptcy. No doubt, it is not a good way to get popularity, but when you are having a financial crisis which makes you unable to pay your debts, it is the best way to get yourself discharged from a huge amount of unsecured debts. Although it has its drawbacks, when there are no other options available, bankruptcy is the one that completely saves you from burdensome debts.

Each case of bankruptcy is different

As I have already stated, a lot of people view bankruptcy negatively. They would say that bankruptcy is bad for future financial life but will not bother to answer why it is bad. Is it a general agreement between people which makes them say so? Although it is true to some extent that filing for bankruptcy may cause trouble with future personal finances, that’s only one part of the story. People talk bad about bankruptcy only because they don’t clearly understand the actual process. Maybe they witnessed a bankruptcy case that turned out terrible, but the truth is that there are no two bankruptcy cases that are similar to each other. People file for bankruptcy for a variety of different reasons and conditions, and most of the reasons are not even in the debtor’s control.

Unanticipated events can cause bankruptcy

If you can pay off the debt yet file for bankruptcy, this kind of act is undoubtedly wrong. When someone files for bankruptcy to defraud creditors or with bad intentions, they are surely cheating the system. But what if the sole breadwinner of the family loses their job? What will their family do after that? How will they pay off their high amount of debts? What about a family who suffer from a massive amount of medical bills because of an unforeseen and unexpected car accident? In these uncertain cases, bankruptcy offers immense relief to the debtor and their family and gives an opportunity to start over their financial life. That is why we say it is easier for people who haven’t experienced bankruptcy and suffered from hardships to talk bad about bankruptcy. You should always remember that it is okay to file for bankruptcy when you are financially broken and have a family to take care of.

Why does bankruptcy have a bad reputation?

Filing for bankruptcy allows people to get rid of the debts that they will never be able to pay. However, it is not exactly right for your credit standing and damages your credit score. The sad part is that after getting a discharge, your bankrupt status can stay on your public record for a very long time. This period can be a minimum of six years and can even be extended to ten years. However, this doesn’t matter since people who file for bankruptcy already have a damaged credit score. They must have gone through a lot of late payments, which might have transformed into no payments and ended in personal bankruptcy.