When you’re talking about bankruptcy, it can be a scary conversation. Unfortunately, there is still a negative stigma around filing for bankruptcy, even if it the best solution for those considering this solution.
The bankruptcy stigma comes in a variety of themes. You may be worried about how your friends and family will react when they hear you talk about bankruptcy. It can also be challenging to get a credit card, or even get one at all, which can give you an unsettling feeling.
If the stigma is what is holding you back from claiming bankruptcy and you know it is the best decision for you, disregard these issues. Remember that thousands of people have gone through the same thing and they come out on top after it all. As mom and dad said, “this too, shall end.”
Social Bankruptcy Stigmas
One of the hardest stigmas to overcome with bankruptcy is the concern of what people will think of you. Chances are there are people you know that have gone through the same situation you are in right now. Although bankruptcy cases are a “public” courthouse matter, typically people do not go out searching to see who filed for bankruptcy. Plus, you can keep it as private as you want. Don’t ask, don’t tell—virtually nobody will even know you went through this cleansing and liberating process.
If you find yourself feeling guilty for filing for bankruptcy, again, it is more than okay. The federal government offers bankruptcy for a reason—people deserve a second chance. Big time. Lots of the time, people who claim bankruptcy had no other choice and did everything they could. Many factors are outside of your control contribute, including the local and national economy. So, if you have guilt for not paying your bills as you should be, that doesn’t make you any less responsible. You have done your best, you will do your best again.
The social and emotional stigma with bankruptcy is something that you can and will keep private, or seek counseling to help you through. Unfortunately, the financial stigma around bankruptcy is one that need not be inevitable. When you claim bankruptcy, your credit score goes down for only a short time—it will skyrocket later. It will be initially more difficult to get credit for things like a home or car loan. The good news, though, is that you can work your way back to a high credit score and remove the stigma altogether. Most post-discharge consumers find themselves normalized on credit and their lives within a few years.
It’s the Best Option
In the end, it’s important to remember the benefits of claiming bankruptcy in your situation over the stigmas around it. Bankruptcy came to be as a safety net for those who need help getting back to a level of life they can survive in.
If you are thinking about bankruptcy, speak with the top bankruptcy attorney in Scottsdale to help you through the process.