Explaining Bankruptcy To Your Family

Some people are reluctant to tell others that they have made the decision to file bankruptcy. They may feel that they will be looked down upon or treated differently by friends and loved ones if they confess to being unable to pay their bills. In addition, many of those who file bankruptcy have been raised to believe that it is somehow “wrong” to use the protection of the law to avoid paying creditors. While none of these things are accurate or fair, these beliefs can be very strong and can even stop some people from filing bankruptcy when it might greatly benefit them. Therefore, it may be helpful to decide before you file what you will share with others and how you will explain your decision.

• Share only if necessary. The first thing to remember is that most people do not have any insight into your financial situation and will not know that you filed bankruptcy unless you tell them. This is particularly true in a Chapter 13 situation in which you can keep your home and car. If it is not necessary to tell anyone about your decision, keep it to yourself to avoid being made uncomfortable.
• Highlight your reasons for choosing bankruptcy. If your friends or family are concerned about your decision to file bankruptcy, you may want to share with them a little of your reasoning and what led you to this decision. For example, you might acknowledge their fears but point out that bankruptcy offered you the opportunity to remove the stress associated with too much debt.
• Do not share too many details. It is no one’s business how much you owe or who you owe it to. If a friend or family member shows unseemly curiosity, just tell that person that you prefer not to discuss your financial affairs in detail.

While some people may frown upon your decision, it is important that you choose the path that offers you the most benefits.   If bankruptcy is the right decision for you, there is nothing for you to be ashamed of. Filing for bankruptcy can help you discharge debt that could weigh you down for decades and can give you a fresh financial start. For more information on how bankruptcy can benefit you, contact the attorneys at the Oswalt Law Group in Phoenix. We will work with you to find the right solution to your financial problems.