Currently, many people are unemployed and facing the possibility of filing for bankruptcy.
Historically, Americans try to be optimistic and wait for things to get better before filing bankruptcy.
Over the years the topic of bankruptcy has had a stigma of dishonesty and failure.
Because of this, most people try to avoid it at all costs.
This is nothing more than a rumor as most people who have to file bankruptcy can't help it.
The most typical reasons for filing bankruptcy are loss of job, a medical illness or a divorce.
Most of these are unavoidable and lead to extreme financial troubles that leave people no other choice.
Since the real estate bubble burst in 2007, many Americans lost their jobs and are trying to hang on to their stuff and avoid filing bankruptcy.
Realistically, that job might not be right around the corner and people need to take their rose-colored glasses off and be realistic.
Just because you file bankruptcy doesn't mean you will lose all your property so people need to get over that.
There are bankruptcy exemption laws that protect a generous amount of property and allow the person to continue living and get a fresh start that bankruptcy promises.
One mistake many people make is continuing to pay their bills by using their 401(k) or savings account.
When the job doesn't come in, they find themselves broke and still having to file bankruptcy to stop creditors from coming after them.
For these individuals they end up too broke to file.
Basically, they have nothing to lose because they have spent everything they have to continue keeping their credit cards fed.
Doing this is foolish as a 401(k) is protected by bankruptcy exemption laws.
Although it seems noble, if filing bankruptcy is inevitable, they would have a much better success rate knowing they still had some retirement left for their older years.
Many Americans continue to hold onto optimism and hope for financial recovery of this great country.
The only problem with that logic is the US has become a nation of consumers and not creators.
Corporations have moved all their manufacturing offshore and with it the jobs that went along with it.
Everything that is left is low-paying jobs leaving the good old days behind.
The government is continuing to expand as small businesses are continuing to close as they can no longer compete with big corporations.
So when someone feels guilty about filing bankruptcy, they need to remember these are circumstances that are out of their control.
If they have any financial assets left it would be much better to file bankruptcy and protect them.
Having something left will allow an individual to get the fresh start that bankruptcy was created for.