Are you afraid to file for bankruptcy because people might think less of you?

Are you afraid to file for bankruptcy because people might think less of you?

| Jun 18, 2021 | Uncategorized |

Filing for bankruptcy in Florida or elsewhere in the nation sometimes has a sort of stigma, or negativity, attached to it. You may worry that people — family members, friends, colleagues or others you know — may make assumptions that reflect badly on you if you file for bankruptcy.

Maybe they will think you are too extravagant with your limited amount of money. They might wrongly guess that you are always buying luxury items you can’t afford, causing you to get into financial hot water. Perhaps those close to you could blame you for not being mature enough to handle your personal finances competently.

There are plenty of myths surrounding bankruptcy. Many of them are not true. (Keep in mind that not everyone cares what other people think of what they do, especially how they manage their money. After all, it’s pretty personal.) And even if you are afraid that everybody you know will learn about your bankruptcy, that should not be a huge concern. Bankruptcy cases are public, but few people will take the time to go hunting for that information.

If you do file for bankruptcy, you have loads of company. According to the website The Balance, “By some estimates, one in 10 adults in the United States will file bankruptcy at some point.” So your situation is hardly unusual.

In this unsettled economy, with millions of people still out of work and businesses of all types and sizes struggling to get back on their feet, declaring personal bankruptcy may be looked at with more forgiveness than before. People of every economic bracket are doing what they need to do to resolve financial difficulties, even if they have to declare bankruptcy.

Things to keep in mind if you file for bankruptcy

  • You may feel guilty about going bankrupt. Try to remember that it might have been the best and only option for you.
  • There is some financial fallout from bankruptcy. Your credit score may dip, at least temporarily.

It will be tougher for you to get credit for a while. These issues are survivable.

  • Think about all the pros and cons of bankruptcy before you make a decision.

 

Don’t allow your concerns about what people might think be the deciding factor into whether you file for bankruptcy. Get sound advice, weigh the facts, put emotions aside and then make a choice.