Is Bankruptcy an Admission of Failure?
People who find themselves in overwhelming debt often look for bankruptcy as an option to achieve a new financial beginning.
However, one of the things that keeps people from fully considering bankruptcy is a sense of shame at the very thought of declaring themselves bankrupt.
This seems to be especially true when dealing with senior citizens or those from an older generation.
At least, this seems to be my perception from my conversations with them.
They seem to believe that bankruptcy is the ultimate admission of financial defeat, and they also believe that filing with the court would leave them a lifelong stigma of financial irresponsibility or failure.
Is bankruptcy an admission of failure? Well, in some sense it is.
However, this admission is not the end of the world.
After all, each one of us has and will continue to fail in many areas of our lives.
The key to success over a lifetime is to learn from our mistakes and continue to improve ourselves one step at a time.
This might seem too simplistic, but it's true.
There are many reasons that people end up having to file for bankruptcy.
Sometimes it is simply a matter of financial irresponsibility and spending too much money on things that we do not need.
Other times, however, it may be that we are met with an unexpected emergency such as a health problem that is not covered by insurance and for which we do not have adequate savings.
Admittedly, it does seem that bankruptcy usually results because people spend too much and end up maxing out their credit cards in order to buy things that they cannot yet afford.
Even so, bankruptcy can come for a number of reasons as we just mentioned above.
The bottom line is that we need to look at bankruptcy as a way to achieve a new financial beginning.
The Constitution allows Congress to establish bankruptcy laws which would balance the interests of creditors and debtors.
In the United States, we have traditionally been much more compassionate to the debtor.
Consider that in other countries or throughout history, you could have been put in jail for not paying your debts.
Bankruptcy is not for everyone, and you should discuss is thoroughly with a good financial advisor.
In fact, you should continue reading articles like this one in order to educate yourself and make the best choices possible for you and your family.
If you do arrive at the decision to declare bankruptcy, don't be ashamed.
Instead, look at this as a new beginning for you and your family.
However, one of the things that keeps people from fully considering bankruptcy is a sense of shame at the very thought of declaring themselves bankrupt.
This seems to be especially true when dealing with senior citizens or those from an older generation.
At least, this seems to be my perception from my conversations with them.
They seem to believe that bankruptcy is the ultimate admission of financial defeat, and they also believe that filing with the court would leave them a lifelong stigma of financial irresponsibility or failure.
Is bankruptcy an admission of failure? Well, in some sense it is.
However, this admission is not the end of the world.
After all, each one of us has and will continue to fail in many areas of our lives.
The key to success over a lifetime is to learn from our mistakes and continue to improve ourselves one step at a time.
This might seem too simplistic, but it's true.
There are many reasons that people end up having to file for bankruptcy.
Sometimes it is simply a matter of financial irresponsibility and spending too much money on things that we do not need.
Other times, however, it may be that we are met with an unexpected emergency such as a health problem that is not covered by insurance and for which we do not have adequate savings.
Admittedly, it does seem that bankruptcy usually results because people spend too much and end up maxing out their credit cards in order to buy things that they cannot yet afford.
Even so, bankruptcy can come for a number of reasons as we just mentioned above.
The bottom line is that we need to look at bankruptcy as a way to achieve a new financial beginning.
The Constitution allows Congress to establish bankruptcy laws which would balance the interests of creditors and debtors.
In the United States, we have traditionally been much more compassionate to the debtor.
Consider that in other countries or throughout history, you could have been put in jail for not paying your debts.
Bankruptcy is not for everyone, and you should discuss is thoroughly with a good financial advisor.
In fact, you should continue reading articles like this one in order to educate yourself and make the best choices possible for you and your family.
If you do arrive at the decision to declare bankruptcy, don't be ashamed.
Instead, look at this as a new beginning for you and your family.
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