Myths Of Bankruptcy: I’m A Bad Person For Filing Bankruptcy

Myths Of Bankruptcy: I’m A Bad Person For Filing Bankruptcy

Many Americans think that filing bankruptcy is a clear sign of failure. They look down on those who have utilized the process, even though bankruptcy is authorized by the U.S. Constitution through Congress.

Article I, Section 8, Clause 4 of the United States Constitution authorizes Congress to enact laws related to bankruptcy:

The Congress shall have Power To…establish…uniform Laws on the subject of Bankruptcies throughout the United States…

Based on this grant of authority, Congress enacted the “Bankruptcy Code” in 1978 codifying it as title 11 of the United States Code. Like almost all laws, rules, and regulations, it has been amended in several instances.

The most recent significant amendment was the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), influenced by the “bankroll” of the country’s largest financial institutions, this legislative act made several significant changes to the United States Bankruptcy Code in an effort to make filing bankruptcy more difficult for Americans.

Theron Morrison has helped 8,000 people file bankruptcy and gain a fresh start. He has helped over 20,000 Utah residents deal with all types of financial difficulties to various extents of severity and tragedy. Were these clients all bad people? Were they all losers and failures?


Prior to the enactment of BAPCPA, the bankruptcy reform lobby (banks) and their errand boys in Congress emphasized this stigma to push BAPCPA forward. These folks clearly failed or chose not to acknowledge the fact that bad things happen to good people all the time.

Unfortunately, many successful people are forced to file bankruptcy. It is important to note that they typically do so because they are not losers or failures. These one-time and future productive members of society file bankruptcy for a long list of reasons.

A person’s financial situation may change overnight. The loss of a job may have far-reaching effects on the financial stability of a household. Divorce may have serious effects on both spouses and especially their children. An illness or accident that affects a family’s primary wage earner may have devastating consequences in a short amount of time.

“Stuff just happens.” No person on our planet or in the state of Utah is immune or insulated from experiencing misfortune.

Bankruptcy is a means for honest people to gain financial relief and a new beginning after experiencing financial turmoil. The experience of a life-altering adverse event does not make anyone a bad individual. The founding fathers intended that bankruptcy provide relief for decent, hard-working Americans who need to get a fresh, financial start.

Theron Morrison and the Morrison Law Group do not negatively judge anyone with financial difficulties. We view them with compassion and understanding. We want to help. Call 801.456.9933 today to schedule a FREE consultation and learn about your Chapter 7 or Chapter 13 bankruptcy options. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

Myths Of Bankruptcy: I’m A Bad Person For Filing Bankruptcy

Theron Morrison

Theron Morrison

Utah’s top bankruptcy and consumer protection attorney.