Why there’s no shame in bankruptcy

Nobody wants to file bankruptcy – but you shouldn’t be ashamed to do it, either.

A lot of people feel like bankruptcy is a sign of some personal failure, or they’re embarrassed that other people might find out about their money troubles. That way of thinking is self-destructive and unnecessary, however. Here’s why you shouldn’t feel bad about bankruptcy:

You’re definitely not alone

The odds are very high that some of your friends, relatives and neighbors have been down this road before you. If you look at the statistics surrounding bankruptcy and work out the math, you’ll realize that roughly 11%-12% of the U.S. population has filed for bankruptcy before – which is slightly more than 1 in ten.

Even famous, wealthy people have been there

Bankruptcy can affect people from all walks of life. Presidents, movie stars, musicians and icons like Walt Disney have all been through bankruptcies. It can only take one bad business deal, one illness, one layoff at work or one major financial misstep to put you in that position.

It’s actually the responsible thing to do

If you’re ducking and dodging your creditors, you’re just running away from the problem. Bankruptcy is a proactive approach to debt that allows both you and your creditors to move on – and so will you. For the most part, your creditors will ‘write off” the debt as uncollectible, which means they’ll be able to deduct it as a loss on their taxes.

Bankruptcy is a perfectly acceptable way to manage your debt – and it is your legal right. Don’t put it off simply because you feel guilty or embarrassed. If your debts have become overwhelming, it may be time to consider this option.