Bankruptcy is undoubtedly a heart-wrenching yet personal decision. However, it’s not only you who suffer the consequences. Your filing also affects the people who live around you.

Indeed, coming up with such a topic for discussion before your friends and family members is a tough job. Just because of the sheer guilt feeling that, you are letting those people down who brought you up, invested for your nourishment and expected a lot from you.

However, if you see no way out than filing for insolvency, it’s time to seek the support of your near ones. Your family and friends have seen you grow up and they are very much familiar to your characteristics. If it’s not your fault, your family and friends are definitely going to be there beside you. Even if it’s your fault, none are going to leave you.

Just know that you are not alone, and most of the time, filing bankruptcy will be the only way to get your life back on track. Instead of struggling without any hope to succeed, it’s better to give in once for a rebirth.

What should be your first step?

First, just find out for yourself why bankruptcy is the best possible choice for you. Next, communicate your reasoning to your family and friends. Once you’re convinced that only bankruptcy can help you uproot your financial problems, go for it.

You would require to go through a Means Test to know which bankruptcy to opt for - Chapter 7 or Chapter 13. If you are not sure about it, our bankruptcy attorneys would be happy to help you.

Should you see bankruptcy as how it is often stereotyped?

People often associate a disgrace and social stigma along with bankruptcy filings. However, this is really meaningless. Bankruptcy is very familiar in today’s economy than it was not too long ago. Perhaps you won’t believe, but in the year 1960, 110,000 people had filed for bankruptcy in the U.S. Compare this figure to the 1.5 million Americans who filed bankruptcy in 2010. What do you get? Are you the only one?

Our economy is still recovering after the hit it suffered during the double-dip recession and it’s obvious that many people will continue to feel the heat. Many a time, bankruptcy happens by no fault of your own, but because of the socio-economic air in your surroundings.

Your family and friends may become judgmental. They may even believe that you are simply avoiding the responsibility of your debt or there aren’t enough debt to even discharge. In these circumstances, frank dialogues can be the best possible option to convince. Try to ensure them that you’ve explored each and every feasible solution and bankruptcy seems to be the best one.You may also tell them that you’ve already talked to a bankruptcy attorney regarding your situation who has recommended bankruptcy as your best option for financial freedom.

Read more - Bankruptcy vs debt relief options - Who is the ultimate winner?

What would be your financial future after bankruptcy?

Some friends and family members might be concerned about the fact that, bankruptcy could affect your credit score negatively. This is just because they love you. There is no wonder that, they would apprehend if bankruptcy would affect your overall creditworthiness and make you ineligible for big purchases in future, and moreover, would eradicate any employment opportunities.

However, the truth is, it is such a variable which is not that much affected as it had been in the past. As bankruptcy has become very common these days, many creditors don’t consider this dent in your credit report a disqualifier. They very well understand that, most Americans are struggling financially these days. Even many bankruptcy filers were seen to have bought cars and homes after a very short span of time as they no longer drowned in debt.

Having a bankruptcy in your credit report is far less damaging than struggling to pay the overwhelming amount of debts and failing. However, your financial future rests in your hand and it’s you who have to take the call.

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