Reversing the Stigma Around Bankruptcy

Most people associate declaring bankruptcy with laziness, dishonesty, irresponsibility, and immaturity. This stigma typically turns people away from the idea of declaring bankruptcy. Bankruptcy tends to be seen as the finish line instead of the starting line. So, where did this stigma come from?

The idea that success = financial status.

This concept is flawed for a lot of reasons. Our society associates being wealthy with being successful. While promoting this, society is also ignoring much of what goes into becoming wealthy (socioeconomic status, resources, access to healthcare and education, generational wealth, etc.) This idea is the driving force behind the stigma that people who declare bankruptcy are lazy. Your success isn’t measured by the amount of money you have; declaring bankruptcy can get you back on even ground so you won’t be at such a disadvantage.

People who declare bankruptcy are untruthful.

Oftentimes, people who declare bankruptcy are concerned with being perceived as untruthful, and as taking advantage of creditors. However, those who typically declare bankruptcy are forced into that situation for reasons that are out of their control. An example of this could be a health crisis with significant medical bills. You’re not untruthful; you were dealt a difficult situation.

People who declare bankruptcy are irresponsible.

Let’s use the health crisis example again. Unfortunately, this is a common thing that happens in the United States. Not only is that something that is out of your control, but it affects your ability to work and make money while raising significant debt. And, once again, you aren’t being irresponsible; you were put into an impossible situation.

Bankruptcy haunts you for the rest of your life.

If you’re worried about your credit score, it’s very possible to build back your credit score in a short time after filing for bankruptcy – typically within a year or two. If you’re worried about discrimination, there are protections placed in our economic systems built to protect you after declaring bankruptcy. What can haunt you forever? Debt.

If you have any more questions about bankruptcy or are wondering if bankruptcy is the right option for you, call Craft Law Offices at 252-752-0297 or visit our website at craftlawoffice.com. We’ll help you set up a free consultation and get you the help you need.