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Here’s why you shouldn’t be ashamed to go bankrupt

| Dec 16, 2020 | Bankruptcy |

If you have put off filing for personal bankruptcy because you feel embarrassed or ashamed, it may be time to think again. For years, bankruptcy has had negative connotations amongst many people. Yet not everyone thinks that way.

Big businesses have never shied away from using bankruptcy

JCPenney, Brooks Brothers, Muji, Cirque de Soleil and Guitar Center are some of the many household names that filed for bankruptcy this year. All of them did so owing far more money than you probably do. Even Walt Disney filed for bankruptcy once. If it is acceptable to the man that brought you such wholesome characters as Bambi, Snow White and Mickey Mouse, you have no reason to feel bad.

Banks and lenders use bankruptcy and calculate the losses into their products

Banks and credit card companies encourage you to borrow money from them. That is how they earn money. The more debt you rack up and the later the payments you make, the more they make in interest and penalties. Lenders expect a certain percentage of people to declare bankruptcy. They have accounted for that when they do their math and will still come out winners.

In fact, banks have also benefited from bankruptcy protection. When the 2008 recession hit, many banks were on the point of failing. The only thing that saved them was the government bailouts paid for with taxpayers’ money.

Declaring bankruptcy is realistic, not irresponsible

You cannot control everything that happens in the world. Circumstances can change rapidly, as many have discovered this year. Struggling on with debt that you cannot pay does not help you contribute to your family, society or the economy. Admitting defeat allows you to start again and put what you have learned into effect. Most successful entrepreneurs have got where they are by being prepared to fail and try again.

The sooner you file for bankruptcy, the sooner you can start rebuilding your rating. Seek legal advice to understand the different bankruptcy options available.