You would never judge a friend, relative or neighbor in the Alexandria area if you found out they had recently filed for bankruptcy protection. But it may feel different if it happens to you. You might feel embarrassed or like a failure just for thinking about filing for Chapter 7 or Chapter 13 bankruptcy.
While your feelings are natural, using bankruptcy protection to get your debt under control is nothing to be embarrassed about. Here are three reasons why.
1. Bankruptcy is a necessary part of the system
The federal government provides personal bankruptcy protections for a reason. Without the ability for individuals to get out of overwhelming debt, the financial system would collapse. By filing for bankruptcy, you are not getting away with something. You are using a consumer protection tool that has helped millions of Americans.
2. Your bankruptcy is your business
You might be worried that everyone in your life will find out you filed for bankruptcy. Like most court proceedings, a bankruptcy is technically public information. But in reality, nobody is likely to look through bankruptcy court filings in Louisiana looking for your name. Besides your creditors, it’s possible nobody will find out unless you tell them.
If you do, you might find out that people are more understanding than you realized. After all, an estimated 10 percent of Americans will file for bankruptcy at some point, so it is very common. And in tough economic times, most people realize that debt can get unmanageable.
3. Bankruptcy is a responsible choice
Finally, you might feel like you’re letting yourself down. You have always taken pride in paying your bills, but now you need help getting rid of debt. But this does not make bankruptcy an irresponsible choice. In fact, if you cannot keep up on your payments, it could be the most responsible thing you can do for yourself and your family. Instead of being burdened by debt, you are giving your family the chance of a fresh start.