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Should I feel ashamed for filing for bankruptcy?

On Behalf of | Jul 14, 2019 | Firm News |

You may have been putting off speaking to someone about filing for bankruptcy, despite dealing with extremely high financial stress. If so, you are like many other Tennessee residents who are being held back by a pervasive stigma of personal bankruptcy. It may put some of your worries to rest learning that this stigma is largely unnecessary. When a business files for bankruptcy, people see it as a way for the company to restructure its debts and come up with a more effective business plan. Why should it not be the same for individuals?

Fox Business explains that the stigma against personal bankruptcy is encouraged by some credit counseling services, financial advisors and banks that warn people filing for bankruptcy should be a last resort and that it can permanently destroy your chances of getting lines of credit again. These claims are simply not true. In fact, the Federal Reserve Bank of New York states that after a personal bankruptcy, people tend to have access to better lines of credit than those who continue to struggle under their debt.

Your friends, family and associates may mean well if they tell you not to file for bankruptcy, but this is a choice you should ultimately make for yourself. You should rest assured that you have nothing to be ashamed of for taking this route, as it can help you get back on your feet sooner and put you on the path to repairing your credit. The information in this post should not replace the advice of a lawyer.