Over four years ago, the American economy took a sharp nosedive, as did the economies of several other western, industrialized nations. Thankfully, the U.S. economy has been steadily rebounding for some time. New commentary among financial experts suggests that the relatively high rate of bankruptcies filed in the U.S. over the past four years has actually contributed to America's financial rejuvenation. European nations without higher rates of bankruptcies are not rebounding as quickly.
The logic behind this argument is fairly simple. Filing for bankruptcy can be initially challenging and emotionally trying. However, once filers have obtained a fresh start after bankruptcy, they are able to move forward financially without an unnecessary financial burden weighing their progress down. Bankruptcy can help individuals and businesses start anew on increasingly solid financial footing.
The large scale economic downturn of the past few years has taught individuals throughout the west an important lesson: anyone, no matter how financial responsible, may fall on hard times at a moment's notice. Because individuals at every income level and at every level of recognition were hit hard by the recession, Americans understand more than ever that bankruptcy is sometimes simply an action that must be taken. There is no shame in attempting to start fresh and continue on your financial journey in responsible ways.
There are many good reasons one may entertain when considering to file for bankruptcy. But Europe is slowly teaching us that the very act of starting fresh is oftentimes a good enough reason to act.
Source: MoneyNews, "MarketWatch: Bankruptcies May Be Helping America Grow," John Morgan, Feb. 8, 2013