Is Bankruptcy a Bad Thing?

Bankrupt shop, signes.

Bankrupt shop, signes. (Photo credit: Wikipedia)

Personal Bankruptcy

A lady experiencing bankruptcy posted a blog on a bankruptcy forum website today and raised a question on a sensitive subject for many people. The lady blogged, “I have gone and read other debt boards, and the main theme to all of them is that personal bankruptcy is such a bad negative thing, it will ruin your life, and you should do what ever it takes to NOT do it. The people on the debt boards will advise you to get three jobs, if you have to, and work yourself to death just to get those debts paid. I know in my case I could work 4 jobs and never get it done. So, is filing bankruptcy a bad thing?”

Going Bankrupt can be Bad

Going into bankruptcy is a bad thing, especially for those who experience it. Going bankrupt means you do not have the financial means to support yourself or a family, and to me, that is a very bad thing. No one wants to become bankrupt. Going bankrupt not only represents a negative toll on your finances, but it can have a negative toll on your overall well being emotionally, spiritually, and physically. As a result, the experience can cause a lot of stress, loss of assets, loss of self esteem, loss of a spouse, loss of a lifestyle, and a wide range of other losses.

Although going bankrupt is a bad experience for all who are so unlucky to venture into it, bankruptcy is often experienced through no fault of your own. Losing a job, experiencing an untimely divorce, having medical problems accompanied by large unexpected medical bills, and being a part of a downturn in the economy are just some of the things that can occur that will contribute to your going bankrupt. None of these events have to be your fault. Life just happens.

Is Filing Bankruptcy a Bad Thing?

Filing for bankruptcy protection is your Constitutional right. Going broke is neither a crime or immoral. Jesus once said that the poor will always be with us, and filing bankruptcy is simply a compassionate way to deal with bad financial situations.

Our founding forefathers were wise in placing bankruptcy as a fundamental tenet within the Constitution. It gave Congress the ability to legislate bankruptcy laws. Bankruptcy laws have evolved through the years as a way for Americans, having gotten into financial difficulty, to have a means to financially start their lives over, giving them a fresh new start.

From the point of view for which bankruptcy laws were intended, filing bankruptcy is not a bad thing, but instead, it is a good thing. If you qualify to file bankruptcy, meaning you are bankrupt, filing bankruptcy is a legitimate option for any American to make a fresh new financial start.

If you find you do not have enough income to pay all your basic living expenses, and you cannot service all your debt by paying down the principal owed over a five year time frame, you may be bankrupt. If you are bankrupt, you might need a bankruptcy lawyer to help you file for bankruptcy protection.

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