One of the saddest comments that bankruptcy detractors make about bankruptcy it that bankruptcy is a way of escaping financial responsibility. That's simply ridiculous. Bankruptcy is financial planning. When a debtor files bankruptcy, they are implementing part of a financial plan to ensure that they have income in the future. How important is bankruptcy for some debtors? Very important. Many debts can take as long as 20 or 30 years to repay. Some debtors, actually most debtors, cannot afford to remain bogged down by debt that long. There is a reason why Chapter 13 bankruptcy only gives the debtor a max of five years to repay their debts, it's because five years is a reasonable amount of time to repay a debt. If you can't repay your debts in five years then you may need some type of debt relief such as a bankruptcy discharge.
Whether you're struggling to pay a house note, a car note, or credit card bills , it can be a sensible move to file Chapter 7 bankruptcy or Chapter 13 bankruptcy as part of a long-term financial plan. Businesses do it all of the time, using bankruptcy to keep their creditors away from their assets while they restructure, get on their feet and figure out a way to repay most of their creditors. Why do people want to give the individual debtors a hard time about filing bankruptcy? Because the individual who is swamped in debt is an easier target than businesses and more likely to believe the myths about bankruptcy. But just like bankruptcy is a financial planning tool for entrepreneurs and multi-national corporations, it can also be a part of the individual's long-term financial plan.