What are the positives of bankruptcy?

Many people across the US file bankruptcy across the country each year, and there is a running theme surrounding the process: shame. There is a prevalent belief in American society that bankruptcy is embarrassing, or even an admission of defeat. The reality is that bankruptcy represents neither of these things; rather, bankruptcy can help you get a fresh start and clear your financial slate. According to FindLaw, bankruptcy can actually save you from embarrassment and help you into a stronger financial future. 

While nobody actively likes having strangers rifle through their financial background, the reality is that receiving constant calls from creditors, getting your credit cards declined, and getting your possessions repossessed are also highly embarrassing. Bankruptcy can help you avoid these, as you are showing that you are taking control of your situation and are willing to work through the situation with the creditors. 

It is also important to remember that no matter how many people you need to speak with throughout this process – judges, lawyers, trustees, creditors – they have all heard stories that are much worse than yours and are not going to be judging you harshly. Again, you are not the only person who has gone through bankruptcy and it is well-recognized within the profession as a person exercising their rights under federal law. 

Bankruptcy is by no means an easy process, and it can be quite emotional at times. But the essence of bankruptcy is taking control of your situation and facing reality. There is no shame in this, and taking this level of control is a strong sign that you are looking to start over with financial stability and security in mind.