Why Is the Subject of Bankruptcy Still Taboo?

Posted on November 18, 2019 at 10:48am by
Kansas City Bankruptcy Attorneys

Our Kansas City Bankruptcy Attorneys Can Alleviate Your Bankruptcy Fears

Bankruptcy has a stigma in the United States. As a country that prides itself on personal responsibility, it is not uncommon for Americans to see bankruptcy as a personal failure. However, this stigma is undeserved. Life can throw curveballs at any moment.

You could lose your job, develop a chronic illness or lose your marriage with little to no warning. All of these scenarios can thrust your finances into turmoil. Even if you do everything in your power to stay healthy or employed, life provides no guarantees. Furthermore, we all make mistakes. Just because you made a mistake with your finances does not mean you should have no recourse to rebuild your life.

Most important of all, if you are considering bankruptcy, then you should take into account that there are more pressing matters than worrying about bankruptcy’s undeserved stigma. If you incur debts that you are unable to pay back, then you could suffer multiple consequences. Your credit history will take a hit. It could become more difficult to find certain jobs or housing. You may also have your wages garnished. Wage garnishments could cause you to default on more debts, throwing your finances into a debt spiral.

Fortunately, you and millions of other Americans have options to resolve difficult financial situations. Bankruptcy can help protect your most important assets while discharging debts that are causing you issues in the first place. There are multiple reasons why you should ignore your fears about bankruptcy.

Bankruptcies Offer a Second Chance

Bankruptcy offers individuals and businesses the opportunity to start over. Without the promise of a second chance, many business owners would be reluctant to start a business in the first place. Without a second chance, many families would suffer for decades. Imagine if 25 percent of your wages were garnished for life!

Fortunately, bankruptcy halts creditor collection attempts while protecting your most important assets, such as a car or home. Whether your debt is fully discharged or reorganized into a repayment plan, bankruptcy offers benefits that far outweigh any disadvantages.

Bankruptcy Protects Your Property

Bankruptcy can save your home, vehicle and other important assets. While there are differences between bankruptcy chapters, filing for bankruptcy issues an automatic stay that prevents most creditors from seizing your assets. This is true even if you file your case at the 11th hour.

Depending on the specifics of your case, bankruptcy exemptions are another mechanism that can provide your assets protection from creditors.

Why No One Talks About Bankruptcy

As we mentioned, even though bankruptcy can offer individuals and businesses a clean slate, the subject remains taboo due to the erroneous belief that only irresponsible individuals file for bankruptcy. This is far from the truth. Most individuals who file for bankruptcy did so due to situations outside of their control.

According to CNBC, two-thirds of people who file for bankruptcy cite medical issues as the main reason for their financial turmoil. A new study in the American Public Journal of Health estimated that 530,000 families turn to bankruptcy each year because of medical issues and bills.

Other reasons for filing bankruptcy include:

●        Mortgages or foreclosures

●        Providing help to friends or family

●        Student loans

●        Divorce or separation

Our Kansas City Bankruptcy Attorneys Can Help

If you are worried about your debt and unsure if bankruptcy is right for you, then we encourage you to call us. Our Kansas City bankruptcy attorneys want to work with you to put you on the path to financial freedom.

The Kansas City bankruptcy attorneys at The Sader Law Firm can help you learn about the benefits of bankruptcy. We can help you during this difficult time. To learn more about your bankruptcy options, contact The Sader Law Firm. Call us at (816) 561 1818 or fill out our confidential contact form to schedule a consultation.