It is natural for Colorado residents to wonder what other people may think of them. This is true in many areas of a person's life, including their finances.
Accordingly, many may fear what others may think of their act of filing for bankruptcy. Yet, those who have been through the process understand that bankruptcy was well worth it to obtain debt relief, no matter what others may have thought of them at the time.
For one thing, bankruptcy is an effective way of allowing individuals to get back on their feet again. When bills mount up, individuals not only find themselves paying off substantial amounts in principal, but making additional interest payments as well. When this interest compounds, it can make it extremely difficult to pay off the debt at a person's current income level. Accordingly, through bankruptcy, a person can eliminate debt and wipe the slate clean.
Aside from other people's thoughts, individuals may also fear filing for bankruptcy because of the after-effects it will have on their credit. While bankruptcy will impact a person's credit score, buying assets like a home and car is not out of the question after some time. Some are able to buy a new home within a matter of a few years after going through bankruptcy.
Bankruptcy may also help a person change their financial habits to avoid getting into debt again. Once the person's finances are set straight and they have a fresh start, the person is able to concentrate on being proactive with their finances, and better realizing where each dollar goes.
Source: Yahoo! Finance, "First person: 20 years after bankruptcy, I'm still debt free," Laura Quinn, Nov. 7, 2013