How to Tell Family and Friends about Your Bankruptcy
Bankruptcy is a public process in the United States. Not only are your court records public, but people can find out about your bankruptcy by doing a background check. Some newspapers also publish a list of the names of people who filed for bankruptcy in that jurisdiction.
It’s unlikely that your friends and family are running background checks on you, so you might think you can keep a bankruptcy a secret. Nevertheless, there are other ways that the information will come out eventually. For example, you might go out to dinner with friends and have to explain why you don’t have a credit card. Or you will need to explain to family members why you never took out that mortgage you were talking about. It’s hard to keep a bankruptcy secret forever.
Fortunately, there is no reason to feel shame after filing for bankruptcy protection. Instead, follow the tips below for broaching this subject.
Explain What You Had to Give Up after Filing
No one enjoys filing for bankruptcy. Nevertheless, the perception exists that filing for bankruptcy is the “easy” way out of debt.
As you will find out, this couldn’t be farther from the truth. When you file for bankruptcy, you will:
- Give up all credit cards, meaning you need to rely on cash and your checking account to pay expenses
- Probably be denied new credit for a few years
- Watch your credit score fall even further
These problems can be surmounted, to be sure, but the key takeaway is that you are not getting off scot-free by filing. Bankruptcy is a serious life event.
Avoid Defending Your Actions
You might know someone who has a religious objection to bankruptcy or who strongly opposes it for another reason. You need to realize that you will probably never change this person’s mind that bankruptcy is a legitimate method of dealing with crushing debt. Let this person disapprove of the bankruptcy. You will probably find that you can easily skirt over the issue so that it isn’t a topic of conversation.
If, however, you feel that your relationship is breaking down because of the expressed disapproval, consider keeping your distance. By filing for bankruptcy, you are reducing the stress debt has caused. You don’t need new stress from friends and family who want to constantly judge you.
Stay Positive by Focusing on the Future
You don’t need to give people a long laundry list of steps you are taking to get back on your feet. However, it can’t hurt to mention a few things you are doing to improve your credit. After telling someone you filed for bankruptcy, you can say, “Yeah, it’s hard no longer having a credit card, but it has allowed me to focus on building up my savings.”
Ready to Consider Bankruptcy? Contact Nowack & Olson Today
No two people are alike, and before filing for bankruptcy protection you should carefully analyze your debts and your financial goals. By working with an experienced Plantation credit repair attorney, you can ensure that you get the bankruptcy you need.
Call Nowack & Olson today, 888-813-4737. We offer a free, confidential consultation to those who request one.