Deciding to file bankruptcy can be an overwhelming decision.
The decision comes with so much turmoil within.
You feel guilty and even ashamed for even considering the option.
Why is that?
It’s because you feel like you should have been able to manage your money and debt a whole lot better than what you’ve accomplished.
Even when it’s not even really your fault and you’re ultimately a victim of circumstances such as experiencing a job loss or some other family crisis that caused you to spiral out of control in your debt, you still have the audacity to feel guilty and ashamed.
To consider bankruptcy, for many, is simply an absolute no-no.
It’s considered to be an undignified action to take on and because of this so many people suffer trying to pay off an insurmountable amount of debt when many times what they really need to do is go ahead and file bankruptcy and get the debt monkey off of their back.
They want to be an honest and moral person, so they continue to try and figure out how to pay this crazy debt that has essentially spiraled completely out of their control causing them distress, worry, and depression while they go from day to day dealing with creditors who constantly call them all day long.
Yet, being honest and moral has absolutely nothing to do with having an extreme amount of debt that you can not handle whether it’s due to making bad decisions in life or due to being a victim of life’s circumstances that has ultimately caused you to have such unreasonable debt.
The point is it does not make a person a bad person if he or she has to file bankruptcy. People don’t always make the right decisions in life.
They are not all-knowing so they make mistakes, bad decisions and experience different unexpected emergencies that result in our having to make decisions that we either thought we’d never have to make.
A bankruptcy will generally last on a person’s credit report for 10 years as opposed to other derogatory information which lasts for 7 years.
There are some misconceptions about filing bankruptcy also.
Many consumers who have homes feel that they will lose their homes if they file bankruptcy, but generally, filing bankruptcy is the only option for saving one’s house.
In addition, many consumers feel that once they file bankruptcy that their credit will never be restored again.
On the contrary, after filing bankruptcy, a consumer gets a chance to have a fresh start and to finally be relieved from all the pressure of the overwhelming debt they once had and after taking a breather to think straight again, the consumer can begin to rebuild his credit again, however, this time it should be done with more attentiveness.
There are creditors who will extend credit to bankruptcy filers to help them rebuild their credit.
The Internet is a good source to search for creditors who will help in the rebuilding of credit after having a bankruptcy.
However, as in any situation, consumers should always consider the interest rate before accepting new credit.
In conclusion, if a person can avoid filing bankruptcy and instead can create a way to dissolve his or her debts, then, of course, he or she should most certainly take that route to avoid having a bankruptcy on his or her credit.
Nonetheless, if a person has an insurmountable amount of debt that he or she cannot handle, bankruptcy or some type of consolidation plan may be the answer for this individual to undertake in order to relieve the distress that he or she may be experiencing and without having to endure shame and guilt for making the decision to do so.