Some people feel a sense of guilt regarding bankruptcy. If they have to file, they feel bad because they think they must have made a mistake. The bankruptcy is their own fault and they blame themselves, perceiving this as a failure.
But the reality is that bankruptcy probably isn’t your fault and probably isn’t any sort of failure. Odds are that it’s just out of your hands. You’re in a tough financial situation and bankruptcy is a legal tool you can use to get out of it. But you didn’t create that situation, and it probably has an independent root cause.
Medical bills
For example, one of the top reasons for bankruptcy is when people face unaffordable medical expenses. That can happen even if you have health insurance when you get services from an out-of-network provider.
Additionally, these medical bills feel necessary. Many people with overwhelming debt had no choice but to get those medical procedures. It’s not as if they wanted to take on the debt. It was just the only way to get proper care under the American healthcare system right now.
Income loss
Another reason for bankruptcy is loss of income. Many people assume that this means you got fired and so it is your fault.
But that certainly may not be the case. Maybe the business you worked for was struggling, so your boss had to cut your hours. Maybe you were the victim of downsizing by a successful corporation, as it trimmed the workforce. In either case, you already had certain debt obligations – mortgage payments, car payments, etc. – that worked for your budget when you had a stable income. But losing that income, through no fault of your own, could push you toward bankruptcy.
If you do decide to file for bankruptcy, it can be complicated, so be sure you know what legal steps to take.
