I went bankrupt – and I want to make it easier for others to do the same

For the first time in five years, I have finally built a future for myself, and it wouldn’t have been possible without declaring bankruptcy, writes Michael Amory

Business is supposed to be transactional by nature, so why do we cast emotions on the concept of personal bankruptcy? (AFP via Getty)

I declared bankruptcy almost three years ago and, once I got over the initial wave of guilt and shame one feels on having to admit defeat – especially on something as basic as affording one’s existence – I can say that it was the best decision I could have made in my circumstances, and that we don’t encourage this option enough to those who are struggling financially.

As of 2022, Americans currently have a combined credit card debt of $887m (£755m), with the average APR interest rate standing at 21.4 per cent. This effectively means that, for every $5 of debt a person has, they are probably accruing more than a dollar of additional debt via interest. You can see how even a temporary absence of employment or a major medical event could result in a debt spiral that leaves little room for escape.

However, despite the ease with which one can acquire debt in our society, we also hesitate to educate people about, or even present as an option, the facility to declare bankruptcy if debt simply becomes too much of a stranglehold on their life. Business is supposed to be transactional by nature, so why do we cast emotions on the concept of personal bankruptcy?