In troubled times many people turn to debt to make ends meet, take care of emergencies or just to relieve the stress of everyday life by charging shopping sprees to their credit card. But more and more Americans are not only become more indebted, they are choosing to rack up large amounts of debt secretly. Many hide their debts from their spouse, children and parents. But hiding debt that is out of control can become a dangerous game. Below are three dangers secret debtors face:
- Debtors who choose to keep their indebtedness a secret are less likely to be honest with themselves about their true financial condition. If others don’t see it then it does not exist is often the mentality held by secret debtors. Also, a debtor who is hiding his/her debts is not likely to consider bankruptcy or to even speak with a bankruptcy attorney about their options because they are in denial. And bankruptcy is often their best option to reduce or discharge the debt.
- Secret debtors are likely to ruin close family relationships and even face divorce. Since debt cannot be kept a secret forever, eventually loved ones will discover the truth and when they do there will be conflict. When a spouse discovers that he/she may need to file bankruptcy because of their loved one’s secret debt, they are likely to feel betrayed. Secret debt can often cause divorce.
- Debt problems that are kept a secret usually fester in the dark, becoming worse with time. Debtors who keep their indebtedness a secret are more likely to face foreclosure, creditor lawsuits and even asset seizures long before they seek the help of bankruptcy. And even when they do seek bankruptcy many are likely to have lost some of their most important assets already.
The bottom line is that when a debtor decides to keep their debt troubles hidden, they often lose out on opportunities to get help. If you are facing a debt crisis, don’t keep it a secret; consider your bankruptcy options as soon as possible.