Most Americans have considerable debt. Chances are, you are one of them. There are many reasons people fall into debt. Maybe you had high medical bills and you had to draw on credit to cover them. Maybe you lost your job, or you have student loans. Maybe spending just got out of control. Regardless of how you got here, it is important to know you have options. Many people cringe when they hear “bankruptcy,” but make sure you understand what it means before ruling it out.
There are many myths floating around out there about bankruptcy. There is also a lot of stigma. Despite what you may have heard though, there is no reason to feel shame. Bankruptcy can be a reason to celebrate, and here is why.
It is good for your health
If your credit score worries you, consider this question: What is your mental health score? Banks created credit scores to serve banks. The United States government created bankruptcy to serve you. You have to take care of yourself. Financial hardship often causes a lot of stress. Your mental health is critical to your overall well-being.
It is good for your family
You are not the only person impacted by your financial troubles. Although two-thirds of parents do not think their stress levels significantly impact their children, the American Psychological Association disagrees. If high stress is negatively impacting you, that can, in turn, negatively impact your children. Bankruptcy can also allow you to put more money toward your family’s needs.
It is good for society
When crushing debt has you strapped for cash, the local economy also suffers. If creditors are hounding you, it can be tempting to prioritize debts over necessities. Bankruptcy can help you put your money where it matters. After all, you are not the only one who benefits when you pay your rent on time. Your landlord does, too.
