Talking to Friends and Family After You’ve Filed for Bankruptcy Protection
March 11, 2020 By: Carrie Weir
Overcoming the Stigma Associated with Bankruptcy
For many people who opt for protection under American bankruptcy law, the decision whether to file is less about whether it will help them financially and more about how they will be perceived by friends and family. Though U.S. bankruptcy laws exist to give debtors an opportunity for a fresh start, there often remains a fear that filing for bankruptcy is a sign of failure, even when it’s the result of events beyond the debtor’s control, such as personal injury, illness, or divorce. But in fact, creditors and others often view the filing of bankruptcy as an indication of a debtor’s willingness to take concrete steps to resolve their financial problems.
Nonetheless, you may be uncertain what to say when a loved one or acquaintance learns that you have sought protection under Chapter 7 or Chapter 13. Here’s are some suggestions:
- Your bankruptcy filing is a positive step—If you have reached the point where you are considering bankruptcy, it’s likely that your situation won’t get any better unless you file. So you’re left with two choices—seek protection in bankruptcy, as the law allows you to do, or watch yourself get deeper in debt.
- The impact on your credit score is only temporary, provided you honor the terms of the bankruptcy—Your family and friends may worry that you won’t be able to buy a car or house on credit again. That’s not true. While there may be a short-term decline in your credit score, potential creditors won’t be concerned about it for long. If you honor the terms of your bankruptcy, your credit score will gradually rise, and potential creditors will see that you’ve turned over a new leaf.
- A bankruptcy filing is better for your health—Studies show that struggling debtors who file for bankruptcy protection have less stress and anxiety, and fewer stress-related health problems, than debtors who try to get out of debt on their own.
Contact an Experienced Rockwall, Texas, Bankruptcy Attorney
At the Law Offices of Carrie Weir, I offer a free initial consultation to all potential bankruptcy clients. Send me an e-mail or call my office at 972-772-3083 for a private meeting. I work with individuals throughout Rockwall County, Texas, including the cities of Rockwall, Heath, Greenville, Lavon, Wylie, Mesquite, and Rowlett.