Feeling Like A Failure: Dealing With The Emotional Aspects Of Bankruptcy

The decision to file for chapter 7 bankruptcy is, for most people, one of the most difficult of their lives. In spite of what many think, admitting that your financial situation has gotten so out of control that you have to rely on a legal procedure to discharge debt can be devastating. Bankruptcy is not meant as a quick and easy method of turning your back on your debt, it's usually more a move of desperation. When you are pushed to the very edge, bankruptcy provides the means to make a fresh start, but only if you are emotionally prepared. Read on to learn more about coping with the emotional aspects of filing for bankruptcy.

Immediate Relief

Just meeting with your bankruptcy attorney can begin to help ease the burden you've been carrying for months or even years. Once you file your bankruptcy paperwork with the federal courts, you will notice that the constant onslaught of letters and phone calls from bill collectors has ceased. Additionally, you can very likely stop making those large minimum payments on your credit cards, since they are considered unsecured debt and are usually fully discharged with a bankruptcy. This frees up some funds to help bring other bills up to date and hopefully avoid losing your home or vehicle. Now is also a good time to begin planning for a better future by reviewing the events and factors that led to your financial situation in the first place.

Feelings of Failure

Along with the feelings of relief will likely come feelings of guilt, despair, and fears of the future. Be prepared for some emotional fallout; most people never imagined that they would find themselves filing for personal bankruptcy. It's very common to experience moods swings, problems with sleeping, eating disorders, depression, anxiety, and more. Knowing about these potential emotional issues ahead of time can help you be prepared to deal with them better. This is a key time for ensuring that your bankruptcy is looked upon as a positive step toward a better future and that you have learned from your mistakes and are ready to move forward.

Feelings of Isolation

Often, bankruptcy filers feel embarrassed and lonely. It's only natural to feel ashamed, but you should understand that you are far from alone. A whopping 789,222 people filed for bankruptcy in the year 2015. That's more than 65,000 personal bankruptcy filings a month! Just because you may not be aware of other people who have filed doesn't mean that these bankruptcy filers are not everywhere around you.

Moving Forward

  1. Instead of dwelling on your negative feelings, use your energy to understand what happened and to make a plan to recover.
  2. Learn how to budget and save for emergencies.
  3. Learn how to carefully acquire credit and how to use credit more wisely.
  4. Learn how to make the most of your credit situation, even with a federal bankruptcy filing on it.

Speak with a bankruptcy attorney like Clinger Richard S for more information about how a bankruptcy can help you get started on a fresh financial path.