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Will filing for bankruptcy affect my reputation?

On Behalf of | Dec 20, 2023 | Bankruptcy

You may be considering filing for bankruptcy in Florida and know that it is probably the right choice for you. If you have been struggling with unmanageable debt for a long time, you know how stressful life can be.

The idea of having the debt dismissed and starting over might feel great, but perhaps you are still worried about filing for bankruptcy. Even if you know you will qualify and be able to complete the process, you may worry about how filing a bankruptcy could affect your personal and professional reputations.

While it is true that bankruptcy sometimes has a bad reputation, one of the main reasons for this is that people do not understand what bankruptcy is, why people file and the potential benefits of bankruptcy.

Common reasons people file

People sometimes assume that only people who are bad with money or spend outside of their means must file bankruptcy, but this is not true. In reality, many people are one tragedy or unexpected event away from having to file bankruptcy.

A sudden illness or accident can wipe your life savings away and leave you with an enormous amount of debt you will never be able to pay off. Many people who have worked hard all their lives and have a decent income find themselves in this type of situation with bankruptcy being the only way out.

Therefore, deciding to file for bankruptcy does not mean that you were lazy or irresponsible with money. Bankruptcy can be a smart financial decision.

Why bankruptcy could be a good idea

Getting your debts discharged allows you to make a fresh start. It relieves you from the burdens of debts from unexpected medical bills, accident expenses or other unexpected debts that led you toward financial ruin.

Additionally, depending on the type of bankruptcy you file, a bankruptcy could help you save your home, vehicles or other assts you are trying to protect. Yes, your credit score will likely take a hit after bankruptcy, but with time and effort you can rebuild it.

Overall, you cannot control how bankruptcy might affect your reputation among family, business associates or friends. However, those who understand the reasons people may file can help you through this difficult time.



Kingcade & Garcia | A Miami Law Firm