3 tips to help you cope with the emotional impacts of bankruptcy

On Behalf of | Sep 23, 2019 | Tips

Filing bankruptcy is the means to an end. It is a way to obtain financial freedom when you have more debt than you can afford to pay. Many people focus on the monetary benefits and forget that they might have to deal with the emotional impacts of the filing.

There are several emotions that you might experience when you file. Throughout the process, your feelings can fluctuate. Being prepared to handle them can help you cope with the journey.

Find your support system

You need people you can trust during this process. Your support system should include an attorney whom you can trust, as well as someone who can help you when you are starting to feel different emotions during the process. These are the people who you will call if you have questions or need to chat. They can also help to keep you accountable as you learn to live on a budget and make reliable financial decisions.

Accept the highs and lows

You might feel relief one day and then sorrow the next. A range of emotions is perfectly normal when you are going through a bankruptcy case. Accept that you are going to feel these and remember that there isn’t anything wrong with filing for bankruptcy. This is a responsible option when you have too much debt to handle. You aren’t stressing yourself out trying to make the minimums and your creditors know not to count on payments coming directly from you.

Keep your eyes on the prize

It is challenging to have to live on a tight budget while you are in the bankruptcy process. If you file Chapter 7, you won’t have as long of a journey. People who file Chapter 13 will have three to five years of living on a limited budget. Think about how your life will change for the better when your case is over. You will be able to focus more on building the life that you want since you won’t have to pay the bankruptcy trustee.

It is always better to file for bankruptcy as soon as you realize that you won’t be able to come out on top of your debts. The longer you wait, the more time you will waste being stressed and miserable. You will likely find a sense of relief when you file your case. Plus, you will have the benefit of the automatic stay, so the collection attempts from debt collectors will cease.