Stigma is an enduring byproduct of bankruptcy, both as felt by the debtor and as perceived by society. The stigma exists even though some have declared its demise, and is certainly present after the BAPCPA amendments aimed at action intended to revive the stigmatic effect of filing for bankruptcy. Bankruptcy stigma may be a useful tool when it prompts individuals to make wiser fiscal decisions, but for debtors who face uncontrollable financial circumstances, this same stigma is burdensome and does not provide a social benefit.
Yvana L. Mols,
Bankruptcy Stigma and Vulnerability: Questioning Autonomy and Structuring Resilience,
Emory Bankr. Dev. J.
Available at: https://scholarlycommons.law.emory.edu/ebdj/vol29/iss1/10