Declaring bankruptcy can save you from high debt and potential lawsuits from creditors. In addition, it can give you peace of mind and a fresh start. However, despite these benefits, some people avoid filing for bankruptcy when they need to.
This guide discusses two reasons this happens:
Misinformation
Bankruptcy is surrounded by numerous myths, including:
- It ruins credit forever
- One may lose everything
- Married couples will both file
- It affects one’s ability to buy a home/car in the future
These myths keep some people from filing, and in turn, they continue to deal with endless calls from debt collectors and potentially face lawsuits from creditors.
If you want to file for bankruptcy, it will be best to obtain adequate information from the right sources.
Stigma
The stigma of filing for bankruptcy is real. Some people avoid filing because it may change how others view them. Undeniably, bankruptcy is associated with poor financial management. But this is not the only factor that contributes to it. You may declare bankruptcy because of medical expenses or loss of income.
Acknowledging that declaring bankruptcy may have been out of your control can help you deal with stigma. Further, it’s crucial to change your perspective. Focus on the advantages of filing for bankruptcy. You are doing this to protect your physical and mental health and give yourself another chance.
Besides, even though bankruptcy is a matter of public record, your family, friends and co-workers may not know unless you tell them. And even if they learn about it, being positive about your decision can help you hold your head up.
If you believe you need to file for bankruptcy, you should get legal help to know the moves to make sooner.
