Filing for bankruptcy causes a negative emotional reaction in most individuals. People often will suffer a decrease in their self-esteem as a result of financial difficulties. It is important for a debtor to understand that having to file for bankruptcy is often the result of major change of financial circumstances outside of the debtor’s control. Factors such a divorce, job loss, illness, disability, a business failure or general money mismanagement can cause someone’s finances to become unmanageable. Financial issues can affect anyone at any time. It is not a personal failure.
The fresh start provided by a bankruptcy discharge can alleviate a debtor of the financial strain caused by their debt. Many successful individuals have bankruptcies in their past.