At first thought, you may think of bankruptcy as the "loser's" way out of debt; essentially giving up on your efforts to pay bills that will forever label you as a cheat or deadbeat. However, you may soon learn that millions of Americans seek bankruptcy protection every year, and they all have one thing in common: They want to leave their troubled financial pasts behind.
You may also be concerned about being labeled (by lenders and credit card grantors, specifically) as being bad with money. While some companies may take such a short-sighted view of this, people with credit card debt tend not to be reckless spenders. In fact, they likely got into debt because of circumstances beyond their control.
For instance, health issues can lead to considerable debt; especially for those without comprehensive medical insurance. Indeed, while the Affordable Health Care act helped millions of Americans who were previously denied coverage because of pre-existing issues, there are still many costly (yet necessary) procedures that are not covered by insurance, which continue to create debt.
Additionally, chronic unemployment may be a reason for bankruptcy filings. Essentially, unemployment compensation is usually not enough to cover basic living expenses. As such, credit card debt is likely to mount for those who have to live on them to make ends meet.
Suffice it to say, if you are toiling in debt, chances are your request for bankruptcy protection is not because of extravagant shopping or irresponsible money management. While this is not legal advice, these circumstances should not deter you from bankruptcy.
If you have any questions please contact our firm at 908-454-3200.