There are many reasons why people try to avoid bankruptcy, but one reason that you should not is that you believe there is a social stigma attached to it. In the past, talking about bankruptcy may have been taboo, but today, it’s more common and better understood.
Bankruptcy is a protection offered to consumers. It can help them get out of debt when they’re overwhelmed so that they can have better financial stability and contribute financially in society.
Some people don’t want to file for bankruptcy because they fear that people around them will find out. Will they, though?
Bankruptcies are rarely advertised in the newspapers or online While it’s true that your creditors will need to be informed about the bankruptcy, it’s rare for news of a bankruptcy to make it into the news.
Unless you’re a celebrity, the majority of people won’t be looking to see if you’ve gone bankrupt. There are also not many reasons why this kind of notification would be given to creditors. Instead, it makes much more sense to contact them directly over the phone or by mail.
Bankruptcy information can be seen by anyone because they’re public records. However, the effort it would take to look up those records is more than most people will put into finding out if you’re having financial issues.
Can you keep a bankruptcy completely private? No, because bankruptcies are public record. However, there may be other options you could pursue before going into bankruptcy that would keep your situation private. For example, a workout or renegotiation of your debt may help you keep your financial information private as you attempt to repay a debt with new, renegotiated rates.
While letting others know about a bankruptcy probably isn’t what you want to do, there really is no shame in it. Bankruptcies are available to those who qualify for a reason: The government has chosen to implement laws that allow you to seek help when you’re struggling. If you need a hand because of sudden financial losses or a heavy debt load, it’s worth looking into bankruptcy as a viable solution.