Knowing that you can’t pay your bills and make ends meet can be emotionally challenging. For many people who are considering bankruptcy, this is coupled with feelings of despair and shame. This doesn’t have to be the way that they feel.

While bankruptcy was once thought of as an easy way to get out of paying bills, the most recent updates to bankruptcy laws makes it difficult for people who don’t need the protection from taking advantage of it. This should trigger a change in mindset about those who do require the fresh financial start.

One thing that you should remember is that you aren’t a failure if you need to file. Many bankruptcy filings come after uncontrollable situations. This might be a job loss due to the economy or a serious medical condition. Even if you contributed to the issue by spending more than you should, you still shouldn’t feel bad about seeking out the available help to get back on your feet.

Many people don’t realize the sacrifices that a person who files have to live with. In the case of a Chapter 13, the person makes regular payments to the bankruptcy trustee to cover the debts. This continues for three to five years, so creditors to receive at least part of the money they’re due.

In a Chapter 7, there aren’t any payments to the trustee. Instead, nonexempt assets are liquidated to pay creditors. Filers for this type of bankruptcy have to meet a means test to file, so they can’t seek this protection if they have too high of an income.

Finally, bankruptcy lets creditors know what to expect from the person who files. There aren’t any hopes of a sudden payoff. The creditors will stop trying to collect money due to the automatic stay, which forbids them from contacting you about the balance on your account.