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Why Is There Such a Social Stigma About Filing for Bankruptcy?
By Steve Rhode for Debt.com
Question: Before the COVID-19 pandemic, I was already deep in debt. I owed $24,000 on six credit cards because I had a girlfriend (now ex-girlfriend) who insisted we travel all the time. I also have an 84-month auto loan for a Land Rover I shouldn’t have bought in the first place, and I’m not even a third of the way through that.
Then there’s $19,000 left on my student loans and $14,000 left on a timeshare I regret buying with some family. I was barely making payments as it was. Then in May, I got laid off.
I’ve already taken advantage of all delayed payments that my lenders and the government were offering, but that’s not going to last. I don’t know when I’m going back to work, and unlike other people, my unemployment is NOT more than I was making before.
I want to explore bankruptcy, but my family and my new girlfriend are warning me against it. They say my finances will be ruined for a decade and no one will want to hire me when they find out I went bankrupt. They say there’s a “social stigma” that everyone, especially employers, has against anyone who’s declared bankruptcy.
Is this true? If so, what are my options?
– Zach in Ohio
