The Stigma of Bankruptcy

Nearly everyone will experience financial difficulty at some point in their lives.  Whether or not you will have to file for bankruptcy is not an easy decision.  There is such a cultural stigma associated with bankruptcy that most hesitate from this desperate answer to their financial situation.  These misconceptions make the decision to file even more difficult, despite it possibly being the best solution for certain financial hardships.

We automatically assume that people filing for bankruptcy have credit card debt for frivolous unnecessary purchases, when in reality, this is rarely the case.  It all comes down to our placing judgment.  We place judgment on people who file for bankruptcy that they’re lazy and should work harder to pay off their debt. 

It is interesting to know that of all bankruptcies filed, more than two thirds of these are a result of medical debt.  With the rising costs of health care, it is no wonder.  Who can control this type of debt?  All it takes is a serious injury, a cancer diagnosis, or surgery… all beyond our control.  In fact, who can possibly prepare for such expense?  Health Savings Accounts are great, but when you receive a bill for over $200,000, I doubt anyone has planned for this type of a debt. 

Filing for bankruptcy is not a moral failure.  Filing for bankruptcy does not make you a bad person.  Over 15 years ago, we had to file for bankruptcy.  We had an overwhelming stack of medical bills.  We could have made payments for the rest of our lives and still never put a dent in the balance owed.  After talking with the many of the billing offices, the recommendation was always “file for bankruptcy”.  I admit it was strange to hear this solution from the very people we owed money.  It was difficult.  It was embarrassing.  In the end, it relieved us of the pressure of overwhelming debt.  We had a fresh start… debt free. 

I am participating in a blogger campaign by Bucks2Blog for a Las VegasBankruptcy Lawyer and was compensated. However, the views and opinions are
my own.