Bankruptcy is no picnic in the park, but it’s surprising the way people actually shudder when they hear the word. You see, people fear bankruptcy. Sadly, they fear it for outdated, misguided reasons that are just plain wrong.
Fear of Humiliation: Wrong!
The main reason for fearing bankruptcy? Humiliation. Ironically, this reason for a majority of the public’s hesitation about bankruptcy is the most unfounded reason of all!
After all, it can and does happen to just about anyone. Remember 2008, the year of the Great Recession? There were more than a million bankruptcy filings in the US. And that number has remained over a million, hitting a peak in 2010 with over 1.5 million filings*. That’s millions of people just in the past six years. Chances are, you know someone who’s involved in bankruptcy right now.
- Rich people file for bankruptcy.
- Highly educated people file.
- Successful people file.
- Financially responsible people file.
- Good people file for bankruptcy every single day.
With so many people declaring bankruptcy, it’s hard to believe there’s still a stigma attached to it.
After all, that stigma is from 500 years ago and originates from a whole continent away. In 1500s Europe, non-payers were sent to prison after being humiliated in public for a period of time. We all know that doesn’t happen anymore. There should be no shame, for the fact is:
- Filing for bankruptcy is often the smartest choice to make.
- It’s often the safest choice.
- It’s often the most financially responsible choice.
And if you’re still not convinced, it might help to know that if your file for bankruptcy, you’ll be in good company. A little bit ago we told you that “successful people file for bankruptcy”? Here’s proof:
- Abraham Lincoln filed when his general store went into debt.**
- Walt Disney filed when his first production studio got cheated and went out of business.**
- George McGovern, who ran for President, filed in 1991.***
- Burt Reynolds filed after spending too much on an extravagant lifestyle.**
- Henry Ford filed when his first car company went belly up.**
Fear of Ruining Your Credit: Wrong!
With shame out of the way, what else is stopping you? If you’re afraid you’ll ruin your credit forever, think again. You’ll be getting a literal deluge of credit card offers, actually! Keep in mind these might have high rates and many will be secured credit cards, but it’s credit and it will knock at your door within weeks of filing.
With these cards you can build up your credit slowly but surely, as you work your way back to a good credit score. As you can see, this fear too is unfounded.
Fears Banished, Give us a Call
So what’s stopping you from finding out about bankruptcy? Give us a call or send us a message and we’ll answer any more questions you may have about filing for bankruptcy and getting your life back on track.