Filing Bankruptcy Should Not Be Considered A Mark Of Shame
Many people wonder if they should consider filing bankruptcy.
In years past bankruptcy used to be viewed as a sign of failure that would be carried with the individual for years to come on their credit report.
However, filing bankruptcy was ideally designed for people who are overwhelmed by financial problems due to various reasons, and who are unable to pay back the outstanding amount of debt owed.
The decision to file bankruptcy then becomes a responsible one for the individual to get back on their feet again.
So then, after one does decide that filing bankruptcy is their best option, they want to know if it will haunt them for years to come and ruin their credit.
While their credit will not be completely ruined if they file for bankruptcy, it will stay on their credit report for about seven to ten years.
The thing to keep in mind is that one's credit is most likely already in terrible shape at the time they are considering filing for bankruptcy.
Most people will find that they will soon receive offers for credit, usually within months of the bankruptcy discharge.
They can then responsibly begin to rebuild their credit and will be able to purchase an automobile or home again.
So why is it that some consumers and small business owners continue to view filing bankruptcy as a mark of shame? They think that it should be avoided at all costs, while corporate America on the other hand uses bankruptcy as a positive step for a new beginning.
Is there seriously any difference when the debtor filing for bankruptcy is a large auto maker or Joe the plumber? When you hear the news about a big business filing bankruptcy, they stress the opportunities that bankruptcy offers them to manage overwhelming debt, to sell off unnecessary assets, and to move forward by restructuring the company.
What people need to realize is that those are the very same opportunities that exist for Joe the plumber and every other individual filing for bankruptcy protection.
If the extremely educated and experienced management of America's largest companies made mistakes that forced their businesses into bankruptcy, then why do individuals who usually come to financial matters and decisions lacking the same expert training, financial reserves, or resilience, consider bankruptcy as a personal failure if they do the same? The thing people need to remember is that filing for bankruptcy is their legal right and it was created to give honest hard working people a fresh start in life.
For many people struggling under the weight of enormous debt, filing bankruptcy just might be the most responsible financial decision they can make.
In years past bankruptcy used to be viewed as a sign of failure that would be carried with the individual for years to come on their credit report.
However, filing bankruptcy was ideally designed for people who are overwhelmed by financial problems due to various reasons, and who are unable to pay back the outstanding amount of debt owed.
The decision to file bankruptcy then becomes a responsible one for the individual to get back on their feet again.
So then, after one does decide that filing bankruptcy is their best option, they want to know if it will haunt them for years to come and ruin their credit.
While their credit will not be completely ruined if they file for bankruptcy, it will stay on their credit report for about seven to ten years.
The thing to keep in mind is that one's credit is most likely already in terrible shape at the time they are considering filing for bankruptcy.
Most people will find that they will soon receive offers for credit, usually within months of the bankruptcy discharge.
They can then responsibly begin to rebuild their credit and will be able to purchase an automobile or home again.
So why is it that some consumers and small business owners continue to view filing bankruptcy as a mark of shame? They think that it should be avoided at all costs, while corporate America on the other hand uses bankruptcy as a positive step for a new beginning.
Is there seriously any difference when the debtor filing for bankruptcy is a large auto maker or Joe the plumber? When you hear the news about a big business filing bankruptcy, they stress the opportunities that bankruptcy offers them to manage overwhelming debt, to sell off unnecessary assets, and to move forward by restructuring the company.
What people need to realize is that those are the very same opportunities that exist for Joe the plumber and every other individual filing for bankruptcy protection.
If the extremely educated and experienced management of America's largest companies made mistakes that forced their businesses into bankruptcy, then why do individuals who usually come to financial matters and decisions lacking the same expert training, financial reserves, or resilience, consider bankruptcy as a personal failure if they do the same? The thing people need to remember is that filing for bankruptcy is their legal right and it was created to give honest hard working people a fresh start in life.
For many people struggling under the weight of enormous debt, filing bankruptcy just might be the most responsible financial decision they can make.
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