Not Every Financial Mistake Leads to Bankruptcy

National Association of Consumer Bankruptcy Attorneys

Not Every Financial Mistake Leads to Bankruptcy

Brian V. Lee

March 28, 2018

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It’s OK to make mistakes. After all, not every financial mistake leads to bankruptcy. Yet the converse is also true. Not every bankruptcy is caused by mistake.

Everyone makes mistakes, but only the wise learn from them. You must allow yourself to learn from your mistakes. Unwillingness to admit to a mistake will invariably lead you to repeat it.

If you have made a financial mistake, it’s OK to forgive yourself and move on. Find a way to fix it, then fix it. If it makes sense to file bankruptcy, then do it. But not every financial mistake leads to bankruptcy.

Not every financial mistake leads to bankruptcy

Even the wealthiest amongst us has made a financial mistake or two. The wealthy absorb financial mistakes more comfortably than the rest of us. For those of us who work for a living, financial mistakes can lead to bankruptcy or even worse. Yet not every financial mistake leads to bankruptcy.

A man should never be ashamed
to own he has been
in the wrong,
which is but saying
. . . that he is wiser today
than he was yesterday.
— Alexander Pope

Part, at least, of living is learning. Using bankruptcy to start over can change your whole outlook. But not every financial mistake leads to bankruptcy.

Sometimes we can absorb the annoyance or inconvenience, or weather the occasional shortage or even crisis. When these become too frequent or unsustainable, however, bankruptcy may be the lesson we take from our mistakes.

If you can pay your bills, then you should do so. May your self-esteem rise with your credit. We all make mistakes, and not every situation calls for bankruptcy.

Not every bankruptcy is caused by a mistake

Know this also: having to file bankruptcy isn’t always about mistakes. It is no mistake to face a medical emergency without insurance if you couldn’t afford health insurance in the first place. It is no mistake when your employer suddenly downsizes and your position is eliminated. Unsuccessfully attempting to start a business does not mean that you should never have tried. When a spouse dies or a storm hits or a big deal falls through, it doesn’t mean you made a mistake. A mistake is a wrong or misguided judgment or action. Sometimes misfortune, and not mistake, leads to bankruptcy.

We will help you explore all of your options, not just bankruptcy. Instead of dwelling on mistakes, we will help you chart a new course forward. Mistakes are what we eventually call experience. Don’t be afraid to make mistakes. Yet you should try to fix them as soon as you realize you’ve made them.