My Money Advantage Just another finance site

No shame in bankruptcy

Once, bankruptcy was an absolute last resort when it came to dealing with debt. It was viewed as utterly shameful, and people would move town to avoid their neighbours´ looks of pity or scorn. However, that was in an age when credit was not as easily available, and most people lived well within their means.

They only bought the house they could afford, and saved hard so that they could buy furniture or anything else they needed. Now we live in a society that is much geared towards instant gratification and appearances, and people are not prepared to wait for the things that they want (rather than need).

The result is that not only has debt become a more acceptable means of funding your lifestyle, but when that debt becomes unmanageable, people are prepared to walk away from what they owe. Bankruptcy has lost its disreputable association, and indeed is seen by many as an easy solution to their predicament. Don´t worry about borrowing too much; you can just go bankrupt and move on.

Of course, not everyone chooses bankruptcy in order to escape their obligations. For some, it is the best option, if they have no means of ever paying back what they owe. Yet the shame has been lost, if not the stress and the restrictions associated with going bankrupt. While it is probably not something you´d advertise, now it is much easier to start again. Society does not condemn debtors as it once did, which has its benefits, but also allows bankruptcy to become more acceptable.