The only reason bankruptcy has such a bad reputation is because it is discussed by people who know very little about filing bankruptcy. It has been said countless times that filing for bankruptcy and getting your debts discharged ruins your credit score. However, most people who need to file for bankruptcy have already lowered and ruined their credit score on their own with missed and late payments.
Bankruptcy is meant for honest people who are suffering through tough times and need assistance getting rid of the financial hole they are drowning in. Depending on the type of bankruptcy that is being filed, your debt will be discharged or a payment plan will be set up and you will receive a fresh start. What is so bad about that?
Getting your debts discharged allows for a fresh start and a chance to rebuild your life. Bankruptcy relieves you and your family from unforeseen medical expenses, car accidents, credit card bills, and life tragedies that were never expected.
Bankruptcy is not for the lazy and irresponsible. Bankruptcy is for those who are trying to take back their life and protect themselves and their family from debt.
Source: National Bankruptcy Forum, “Is Filing Bankruptcy Bad? Can It Be Good?” Allan Bloomfield, March 11, 2014.