Combating the Stigmas of Bankruptcy

: Reese Baker & Associates

  Filed under: Bankruptcy Information

pathFor many people eligible for bankruptcy, the associated stigma keeps them from filing – and from receiving much-needed financial relief. Although the stigma varies depending on each individual case, it’s important to weigh the pros and cons of filing. You’ll probably discover that the pros outweigh the cons. The positive outcome of starting fresh with your finances is a much greater reward than avoiding emotional stigmas of bankruptcy while continuing to struggle with your debt.

A Way Out

Remember, the bankruptcy system was designed to be a safety net to catch those who are struggling severely to stay afloat of their finances – by Congress itself. When thinking about your options, remember that without the bankruptcy system, the nation’s financial system would be in trouble of collapsing. Without an “out,” everyone with debt would be stuck in it forever.

Believe it or not, the financial stigma associated with bankruptcy is nowhere near as dire as you might imagine. If your credit score is low, you may even see it increase immediately after filing.

Furthermore, emotional and social stigmas have absolutely no bearing on your financial status. While your creditors will know you have filed for bankruptcy, and your bankruptcy will be made visible through public records, there’s no way for others to know about your status without looking for it.

If you feel guilty for not paying bills on time, remember: your financial situation has gotten out of control. A Texas bankruptcy is a way to make it better. Ultimately, it comes down to making the best decision for you and your finances.