Surviving A Bankruptcy: How To Cope With The Emotional Fallout

Posted on: 14 January 2016

Many times the emotional impact of a bankruptcy declaration is minimized, much to the detriment of filers. Most of you learn about how to handle money from your parents and taking financial responsibility is always emphasized, so it's only natural that self-worth becomes tied to net worth. Your ability to turn your bankruptcy filing into a positive move depends on how much attention you pay to your mental health, so read on for tips on dealing with the emotional fallout of a filing. 

Initial Feelings of Relief

Dealing with debt collectors is demoralizing and exhausting. The wonderful and expedient relief offered by bankruptcy's automatic stay will put an immediate end to harassing calls, letters and emails. Furthermore, you will likely get a (temporary) reprieve from being ousted from your home via foreclosure or eviction.This "honeymoon" period gives most filers an opportunity to take a deep breath and begin to make plans for a better financial future.

You Are Not Alone

Feeling isolated, shameful and embarrassed are common emotions that follow a bankruptcy declaration. It's important to be realistic, however. While figures for 2015 are as yet unavailable, a whopping 936,757 people declared bankruptcy in the year 2014. This figure averages to about 19,000 people per state, with approximately 1583 people filing per month per state. If you can find any comfort in those numbers, you should realize that there are many people in the same boat with you and that you have no need to burden yourself with shame and isolation. It is likely that many people you know personally have actually declared bankruptcy, but are keeping that information on the down-low and not advertising it.

Educate Yourself

Allowing yourself to wallow in self-pity won't help you to recover and begin anew. Not everyone has had the opportunity to learn good financial habits but there will never be a better time than right now. Local libraries and the internet present thousands of resources for help, including budgeting, how to use credit wisely and the importance of putting aside money for a rainy day. Some sites present you with opportunities for not only learning better financial habits but allow you to be part of a community of people who are in a similar situation as yourself. Support during this time is key, so reach out for help and make some positive moves.

Choose a bankruptcy attorney (such as Michael D Hart PC) to help you not only file the right papers at the right time but to be a source of support during this difficult time. With care and patience, you can build your credit back and make your way towards a more secure future.