Macco Law Group, LLP

Why are people still ashamed of filing for bankruptcy?

Why are people still ashamed of filing for bankruptcy?

You have been struggling with your finances for some time now, but the main thing holding you back from filing for Chapter 7 bankruptcy is the stigma you believe is attached to those who go bankrupt. The thought of filing for bankruptcy may raise your anxiety level, as well as instill numerous other negative feelings. However, you are not alone if you feel embarrassed or ashamed to admit you need help. Other New Yorkers are struggling with their perceptions of a social and financial stigma surrounding bankruptcy.

As The Balance explains, most people who are ashamed to file for bankruptcy worry about how their peers or family members will see them if they find out. They may be concerned that a bankruptcy could affect their employment prospects or that they will be unable to get loans in the future. You may be relieved to learn that bankruptcy no longer carries the stigma it once did. In fact, there are many lenders that will offer lines of credit to those who are just out of a bankruptcy, knowing that they will likely borrow carefully and pay their creditors responsibly while they rebuild their credit scores.

It can also come as a relief to learn that bankruptcy is more common than you might have thought. About one out of every 10 people in the United States will file for bankruptcy at some point. Today’s financial climate can be challenging and unstable even for those who make a lot of money.

It can help to know that you are not alone in your uncertainty when considering bankruptcy. However, since you will need to fully understand your options, this information should not replace the advice of a lawyer.