Bankruptcy Myth 06
Filing Bankruptcy means you are somehow "immoral".
Most people file bankruptcy due to circumstances beyond their control. Often, the debtor or someone in the debtor’s household loses a job. Other debtors file because they loose a spouse’s income through death or divorce. Others file because of sky high interest rates on credit cards or mortgage loans. Overwhelming medical expenses, business failure, bad luck or simply poor money management skills often drive people to seek the protection of the bankruptcy courts.
Most people file only as a last resort, and have already borrowed from friends and mortgaged their property, but still can’t pay all their debts on time. Congress has provided bankruptcy as a safety valve to protect honest people who find themselves in circumstances beyond their control.
