Does Bankruptcy Come With a Stigma?

Bankruptcy Lawyer

Bankruptcy Lawyer

Many people choose not to do things in life because there may be a stigma attached to them. Filing for bankruptcy, while it may be a decision that could truly help your financial situation, still gives people a reputation for being unable to handle their money. This can be incredibly difficult because when someone has hit rock bottom financially, there are often few ways to get back up. Filing for bankruptcy is one of the best ways a person can wipe their financial slate clean or begin paying back their debt incrementally. If you are interested in filing for bankruptcy but are unsure of doing so because of the stigma attached to it, read on. 

What kind of reputation does bankruptcy have? 

Especially when people do not know much about bankruptcy, they may assume that means a person who files for bankruptcy does not know how to take care of their money. While this can be true in certain cases, going into debt is simpler than most people think. Many people may be one bad car accident away from bankruptcy. Medical bills can easily pile up or a spouse’s poor financial habits can mean the next step is bankruptcy. However, going bankrupt does not make you a bad person and it does not mean you make poor choices. In fact, bankruptcy may be one of the smartest things you decide to do. 

Will everyone automatically know that I filed for bankruptcy? 

A lawyer, like a bankruptcy lawyer from a law firm like Pioletti Pioletti & Nichols, understands that if you file for bankruptcy it can feel like everyone will suddenly know about it. This is true of any creditors you owe money to and it will be true if someone runs a background check when you look for an apartment or want to buy a house. However, your friends and family will not automatically know that you have gone bankrupt. Your credit score will take a dive and you may have a harder time getting loans or being able to rent an apartment, but that does not mean you don’t have options. Bankruptcy can give you freedom from your debt and when done correctly, you may have either a fresh start or you may have a schedule for paying off your debts that is much more feasible. 

Are you are interested in seeing if bankruptcy can help you with your financial problems? Learn more from a local attorney to see if bankruptcy is the right decision for you.