One of the things that keeps people who would benefit from filing for bankruptcy from doing so is the thought of how it will affect their reputation. They fear that people will look at them differently if they find out.
Is this true?
Most people won’t care
As humans, we tend to overthink things and assume others spend as much time thinking about us as we do about ourselves. Just as most people won’t dwell on the color of your eyeliner, or shirt, most people will not dwell on the fact you file for bankruptcy.
If you were to mention it to them in conversation, they might surprise you with a reply such as, “Oh yeah, I know a few people who did that” or even, “I know how you feel, I once had to file, too.” Most of them will then just move on with their lives and discuss other topics they consider more important, such as the game from the weekend or the weather. In short, filing for bankruptcy is not something most people will care about.
A few people still might
There will always be people who love to gossip and get excited when they find a titbit of information they can share about someone. You can’t spend your life worrying about this small minority.
Potential employers may also take an interest in your bankruptcy. Again, some of them may have been there themselves, as failing and filing is how many entrepreneurs finally find success. However, it’s illegal to discriminate against an employee or potential employee based on bankruptcy.
Before going for an interview, consider how you can frame the experience as a positive, even if you don’t feel that way right now. If your debt came about through mistakes, explain how you have learned from them. If it was down to bad luck such as a medical emergency, explain how there will always be difficult situations in life that require difficult decisions and filing proves you can make those calls.
Learning more about how bankruptcy works could be the first step to a better future.