How Do I Tell My Kids or Other Family Members about My Bankruptcy?

People are often embarrassed about bankruptcy and are afraid to tell their kids or other family members what’s going on. They feel like a failure and don’t want to burden family members with their problems.

After over twenty-five years of filing Chapter 7 Bankruptcies in Denver, I know that the best way to deal with this is to be honest. Many families come to see me and bring the kids with them. It is important for kids to know about life—the good parts and the bad—and, frankly, sometimes I think the kids learn a lot of good advice from understanding what their parents are going through.

People are also embarrassed to tell their own parents or grandparents about their bankruptcies. Sometimes they have to because they are co-signers on a debt and must be notified. Sometimes, this is the biggest single fear people have—telling the folks!!

Again, after many years experience, I advise people to be up front and honest with their families. Clients tell me all the time that the family member they were most worried about telling is the most understanding! In fact, they want what’s best for you, and are fully supportive of the process as it leads to a new future debt free.