One common misconception that people have about bankruptcy is simply that it is their own fault. In fact, this can become very problematic. Some people will blame themselves and feel guilty about filing for bankruptcy in the first place, causing them to avoid using helpful legal tools to clear their debt and create a positive financial future.
But is it actually your fault if you are facing overwhelming amounts of debt? When you look at some of the top reasons why people file for bankruptcy, you will see that many of them are largely out of that person’s hands.
Medical debt
One example of this is that people often cite medical debt. They have outstanding hospital bills that they cannot pay, which could cost tens or even hundreds of thousands of dollars.
But is that really that person’s fault? They did not set up the healthcare system or determine how much the treatment was going to cost. It is not as if a person having a medical emergency wants to take on medical debt; they just feel that they have no choice. This makes it much different than other types of debt, which are just based on a person’s preferences. Medical debt is a necessity, and these costs are therefore unavoidable.
Some will say that the solution is to have health insurance. But this does not necessarily prevent medical debt issues. People still have to pay their deductible, for example. They may also receive out-of-network services that their health insurance company refuses to cover.
Filing for bankruptcy
As you can see, this is one example of why bankruptcy often is not the filer’s fault. If you are considering a bankruptcy filing this year, be sure you know what legal steps to take.