People are often reluctant to file for Chapter 7 bankruptcy. It can be an overwhelming step. It may feel like a person is admitting failure in “Life 101.” The shame people feel about money problems is no small matter.

There is good news. Bankruptcy does not carry the negative vibe it once did. With the many blows to the American economy during the past decade, many people have faced severe financial setbacks and lived to see their lives turn out well.

There is no shame in filing for bankruptcy

Once people get over the idea that bankruptcy means personal failure, they may find that life after bankruptcy can be better. There are many reasons to welcome the opportunity to make a clean start.

Yes, bankruptcy will impact credit scores, but these days, it is not impossible to rebuild and even exceed former credit profiles. People with a bankruptcy in their past can go on to become financially stable. Bankruptcy does not doom people to dwell in an airless basement apartment for life.

Public attitude toward bankruptcy has improved

So many people have experienced financial trauma in recent years, it is a given that almost anyone could suddenly hit a pothole and end up with economic damage. It comes with today’s territory. Now, more than in past years, the public sees bankruptcy more as the result of uncontrollable outside factors. They no longer look with scorn upon someone forced to deal with creditors through bankruptcy. Americans know it could happen to anyone.

The days when people assumed that living in the United States guaranteed a measure of financial security are gone. What remains is a more robust nation, filled with people who realize they can handle life’s setbacks and emerge with their lives intact.

Famous people who declared bankruptcy

It is hard to believe that famous people were once in the black hole of financial despair. Among those who went through bankruptcy and turned their lives around afterward include such people as Abraham Lincoln, George Foreman, Elton John, Walt Disney, Willie Nelson and MC Hammer. Many other well-known people have used bankruptcy to reinvent their lives. Today, they are famous and successful. Although wealthy people seem worlds removed from average Americans, the truth is that many went through hard times and decided not to let desperate financial events define their futures.

Declaring bankruptcy can be humbling and even frightening, but most people are pleasantly surprised to find that bankruptcy lifts their lives out of dread and tremendous fatigue. Attempting to bail water out of a sinking ship with a teaspoon can quickly make life miserable. Imagine the relief bankruptcy provides with a life-saving airlift onto a sail-worthy craft. It may be small, but the new boat is dry, and life is suddenly brighter.