Honestly, it is not that bad, really. I filed a chapter 7, which discharges your unsecured debts like credit cards, personal bank loans/lines of credit etc. It cost me about $1,350 in legal/filing fees and my atty’s. legal asst. was the greatest guy in the world. Am I happy that I had to file after years of excellent credit and never an issue in paying my bills, no.
It does feel rather demoralizing, but, OTOH hand it also had nothing to do with any irresponsibility on my behalf and everything to do with losing my work, and life savings in the recession between 2010 and 2013. What’s a joke is how, almost the day you file, how credit card companies and car malls and all manner of credit peddlers find you and you are inundated with offers to buy, buy, buy again. Unreal!
My bankruptcy was pretty simple and with only 2 creditors but I was astounded to hear from my atty. the insane amount of debt some people have.
He said one of his clients had over 180 creditors after them!
It used to be that many people filed because of negligent money managing habits but now, in light of the recession the two biggest reasons people file are job loss and medical bills.
I’d rather have not had to do it but, I also don;t feel bad about it either as it was no fault of my own.