In his early days as a bankruptcy lawyer with Wink and Wink, P.C. in Colorado, Michael Wink became quickly familiar with the stigma that surrounds the idea of filing for bankruptcy. Unfortunately, people assume that someone who files for bankruptcy is poor, spends more than he can afford, abuses credit cards, is unreliable, and possesses a whole slew of other unfavorable characteristics. In reality though, sometimes bankruptcy is your best option when you find yourself in a financial bind. And, contrary to popular belief, bankruptcy doesn’t have to mean that your credit and financial future are completely ruined for the rest of your life.
The truth, explains Wink, is there are a lot of people who would benefit tremendously from filing for bankruptcy, but who aren’t doing so simply because of the stigma that surrounds it. There is nothing wrong with bankruptcy, he adds. In fact, a lot of prominent people ended up filing for bankruptcy and then went on to become incredibly successful, including these famous figures:
Abraham Lincoln – During his long road to becoming one of the most recognizable and admirable presidents of the United States, Lincoln found himself in debt to creditors for both his business ventures and his personal assets. Even though filing for bankruptcy wasn’t an option back then, he didn’t let setbacks keep him from pursuing his goal of presidency.
Walt Disney – Disney is now a name synonymous with happiness, success, and the belief that dreams really do come true. However, early on in his career, one of Disney’s first film studios, Laugh-O-gram Films, ended in bankruptcy just a little over a year after it first began. Instead of giving up though, Disney continued to pitch his movie ideas and soon lived happily ever after.
Thomas Jefferson – Most people know that Jefferson wrote the Declaration of Independence and became the third U.S. president, but according to historians, he also spent most of his life in debt.
Henry Ford – Ford’s first attempt at establishing an automobile company, Detroit Automobile Company, went bankrupt in the early 1900s. Afterward, Ford reorganized the company under the name Henry Ford Company, but unfortunately, that business failed as well. Certain that an automobile business would flourish, Ford created a third company which we know now as the Ford Motor Company.
Samuel Clemens – Better known as famed author Mark Twain, Clemens spent most of the earnings from his writings on failed investments and in his publishing company, which saw some early success but ultimately failed. Scrambling to get his finances in order, Clemens filed for bankruptcy and began to repay creditors with the money he was able to make through his participation in lectures around the world.
Milton Hershey – Not one, but two of Hershey’s first candy businesses went bankrupt before he was able to successfully create a third shop in Pennsylvania. Once his third business began to flourish, he sold it and concentrated his efforts on creating the perfect chocolate recipe for his new business venture that focused on milk chocolate candies.
Bankruptcy is becoming increasingly common in America, Wink says, because for too long, banks and credit card companies were partaking in predatory lending practices that left many in debt. Even after you file for bankruptcy, you are still a productive member of society. No one remembers these famous people for their failed endeavors; instead, their legacies are created out of their successes. Sometimes, he says, you have to fail before you can try again and succeed.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
