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Facing the Social Stigma: Tips for "Owning" Your Chapter 7 Bankruptcy

Posted on in Bankruptcy

The decision to petition the U.S. Courts for protection under Chapter 7 bankruptcy is a highly personal decision. For those deciding to consult with an experienced bankruptcy attorney, choosing to move forward often stems from dire financial necessity in order to alleviate insurmountable debt through the “liquidation” or sale of a debtor's nonexempt property, with all proceeds scheduled to be distributed to awaiting creditors but at what cost publicly?

The stigma or deviation from the societal norm may be one of the leading reasons an individual may shy away from seeking financial solutions under Chapter 7 bankruptcy protection. Concerns that family, friends or business associates may ostracize or view them in a different light often adds to the stress of financial difficulties.

Although the bankruptcy stigma varies widely, there may still be some truth to the matter and any individual contemplating bankruptcy should first consult with an experienced bankruptcy attorney to determine whether seeking Chapter 7 protection is the best financial recourse.

By leaving the legalities to a qualified bankruptcy attorney, there are methods of dealing with the emotional aspects of bankruptcy. The following suggestions may prove beneficial for anyone dealing with the emotional anxiety often associated with filing for personal bankruptcy.

Own Your Bankruptcy

Take personal ownership of your financial situation but do not consider your financial strain as a character default. Filing for bankruptcy does not equate to being a “bad” person but perhaps just one who is less skilled at managing personal finances.

Define Your Bankruptcy

Take an inventory of all financial decisions that may have contributed to your financial situation and learn from them. Not examining the root cause of your financial errors may leave the door open to experiencing additional financial hardship at a later date. Accept the challenge as a learning tool to ensure future sound financial planning and wiser money management practices.

Share Your Bankruptcy

Although the entire world does not need privy to your financial hardship, consider sharing your experiences with a local support group. By sharing your emotions and financial concerns with those experiencing the same situation may be extremely therapeutic and offer alternative perspectives.

Release Your Bankruptcy

Often bankruptcy is the result of actions beyond personal control. Job loss, divorce or escalating medical bills are to blame. Perhaps harder said than done, find comfort in accepting bankruptcy as a means to provide debt relief and achieving a brighter financial future.

Liberate Your Bankruptcy

Filing for bankruptcy can be liberating as well as educational. Although difficult, the destruction of all credit avenues opens the door to new spending habits. Adopt a new mantra, “cash is king”. Freeing yourself from the vicious cycle of credit card and other forms of unsecured debt will prevent future instances of elevated and unnecessary debt.

Manage Your Bankruptcy

Engage family and friends. By enlisting their support you maybe surprised as to how many of those close to you have also experienced financial difficulties. They may also share useful suggestions on how they managed their debt issues.

Opting to file for Chapter 7 bankruptcy protection may evoke preconceived negative connotations by some but “own” your personal decision as a means to achieve future financial stability.

With over 20 years of seasoned Chapter 7 bankruptcy experience, the skilled Arlington Heights bankruptcy attorneys of Newland & Newland, LLP are ready to help. Our legal team is experienced in all aspects of bankruptcy law. Contact our Arlington Heights location at 847-549-0000 for more information today

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