The financial struggles that Texas residents go through often lead them to a variety of debt relief options. Sadly, many of them will not work for everyone, and those individuals may consider filing Chapter 7 bankruptcy, but worry about how it will look to others. Fortunately, the stigma that used to surround this legally protected process has virtually vanished.
People who do worry about how it will look if they file bankruptcy often consider how friends and family will react. The truth of the matter is that no one really has to know. Yes, a bankruptcy may be part of the public record, but it is not something most people go actively looking for about people they know. It may come up in an employment or housing search, but those results should not be made public.
Obtaining credit in the future is something else people tend to worry about. Yes, a bankruptcy will show up on an individual’s credit report for up to 10 years, but the more time goes by with a good credit record, the less it affects obtaining new credit. Furthermore, the average person does not have the ability to see another person’s credit report. The only way friends and family will likely know about it is if the filer tells someone.
Filing for Chapter 7 bankruptcy has far more benefits to the filer than any potential social stigma, which may not even exist. In the months and years following the collapse of the housing market, many residents here in Texas and elsewhere took advantage of this debt relief option. Hundreds of thousands of people do so each year in order to receive a fresh financial start. Concerns about any stigma that may still exist could be alleviated by discussing the benefits of bankruptcy with an experienced attorney.