When you talk to people who could benefit from bankruptcy but still don’t want to use it, the reasons they give are often interesting. They may say they feel like they’re supposed to pay their debts back and it’s a bad idea not to do so, or that they don’t feel comfortable with this sort of moral decision. They may talk about the way other people will view it or what those people will think, assuming friends and family members will blame them for the bankruptcy filing.
It’s okay to feel somewhat unsettled at this time, as you’re certainly going through a financial difficulty you didn’t expect. However, don’t buy into the myth that this is your fault or it is a poor moral decision. That’s not how bankruptcy works in the United States and you don’t want that to sway your decision.
Why bankruptcy really happens
First off, let’s consider the fact that medical debt accounts for the vast majority of bankruptcy filings in the United States. Certainly, it’s not hard to see that it’s not your fault if you were sick and couldn’t afford the medical care that you needed.
You’re not going to refrain from getting the care you need just because it’s expensive and your insurance doesn’t cover enough. You’re going to get it, and then you need to know what financial options you have. You didn’t choose this healthcare system or the actual health condition itself, and bankruptcy might be a solution to the financial troubles the system has created.
Other reasons for bankruptcy include things like loans with high interest rates, changes to your economic situation or losing your job. Again, most of this is out of your hands.
Bankruptcy is just a tool
You also don’t want to think of bankruptcy as a moral decision. It’s not moral, it’s financial. The bankruptcy law is there to help you.
Rest assured that the creditors and lenders also have financial tools at their disposal, and they will use them in whatever way is best for their business. You can do the same thing. This may be a big decision, but there is no right or wrong. You’re just considering what tools you have at your disposal and what legal options exist to help you deal with your debt.