Highly Seasoned Legal Professionals

Do people avoid filing for bankruptcy because of the stigma?

On Behalf of | Jun 12, 2023 | bankruptcy |

Financial hardship can be a bitter pill to swallow. Unfortunately, anyone can be in this position and may need to file for bankruptcy. However, some people avoid doing this because of the stigma associated.

Gone are the days when bankruptcy was associated with poor money management, and people who filed were viewed negatively.  Today, most people understand that one may need to declare bankruptcy due to medical bills and other unavoidable financial issues. In fact, bankruptcy has become so common that many people you know may have already been there.

In other words, the negative public stigma associated with bankruptcy has largely faded, although people still often feel guilty about taking that step.

How can you overcome your own negative feelings?

Since the stigma of bankruptcy can be mostly in one’s mind, switching perceptions can be the best way to avoid it. Instead of focusing on the negative impacts of bankruptcy, you should think of the benefits you will enjoy, including:

  • No more calls from creditors 
  • Protection from lawsuits 
  • Emotional relief-no more stress
  • Preventing repossession of some of your assets and foreclosure 
  • Stopping wage garnishment

When you focus on the benefits and are determined to gain them, the stigma may be a minor issue.

Another way to overcome this stigma is by telling your loved ones about your decision. Being scared that your family and friends can find out about your bankruptcy on public records sooner or later can intensify the stigma. Controlling how the information is revealed can help.

If you believe it’s time to file for bankruptcy, you should obtain adequate legal information to make the right moves.  Call a bankruptcy lawyer to learn more about your options.