Some people associate a stigma with bankruptcy. Even those whose financial situations completely justify the need to file for bankruptcy can feel upset about going through the process. Why does the shame and stigma exist?
Perhaps it has something to do with some high-profile news stories we see about stars who file bankruptcy. While there are some celebrities and now successful business people who have gone through bankruptcy properly, there are those who give it a negative spin.
A current example of this has been in the pop culture headlines recently, with the star of a Lifetime reality show being sentenced to prison time. Though her case is associated with bankruptcy, there is a major distinction to highlight. Dance Moms coach Abby Miller did not follow bankruptcy rules that applied to her and that apply to anyone who elects the legal process.
Miller was charged with and convicted of bankruptcy fraud. She is sentenced to spend about a year in prison — not because of bankruptcy but because of the fraud she committed related to her case. The fraud she was accused of was the concealment of assets she could have used to apply to her debts. You cannot hide assets at any time surrounding a bankruptcy process. Doing so can most definitely get you into legal trouble.
If you are afraid to file for bankruptcy for any reason, try to quelm your fears by talking with a bankruptcy lawyer whom you trust. Your legal support will tell you whether you are eligible to file, as well as how to strictly follow the rules of the process in order to avoid further hardship in your life.