We’ve seen it at our firm over and over again: A client comes to us and they feel ashamed about wanting to file bankruptcy. Somehow, they believe there is a stigma about filing bankruptcy and they feel as if despite their best efforts to pay their bills, they’ve let their creditors down.
If arriving at the decision to file bankruptcy was a hard one, you’re not alone. Usually, after much stress trying to keep up with bills and weighing one’s options, the debtor finally arrives at the decision to file Chapter 7 or 13 bankruptcy, and we assure you, it’s their last resort. What’s also common is feelings of shame, as if the debtor is doing something immoral or unethical, but is this perception true?
Bankruptcy Offers Debtors a Fresh Start
We assure you, there is NO SHAME in filing for bankruptcy relief. Even though it’s more widely used during tough economic times like the coronavirus pandemic of 2020, it’s been a valuable tool for decades. Since COVID-19, household names have been filing bankruptcy left and right and you probably recognize these brands that sought bankruptcy relief:
- 24 Hour Fitness
- Gold’s Gym
- American Addiction Centers
- Cirque du Soleil
- J. Crew
- Neiman Marcus
- Pier 1
- Many more
If big box retailers have no shame in filing bankruptcy, why should you? After all, our own government supports individuals, couples, and businesses seeking bankruptcy relief when they would benefit from it.
“Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity,” according to the United States Courts.
In the U.S., there are several types of bankruptcies, including Chapter 7, Chapter 13, Chapter 9, Chapter 11, Chapter 12, and Chapter 15. All bankruptcy cases are handled in the federal court system and are governed by rules set forth in the U.S. Bankruptcy Code. Of the above bankruptcies, individuals typically file Chapter 7 or Chapter 13, and businesses file Chapter 11.
“Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences,” states the United States Courts. Are you ready to get started? To explore if bankruptcy is right for you, contact our firm for a free case evaluation.