Surviving The Emotional Effects Of Bankruptcy

Bankruptcy has become a relatively common occurrence in the United States, especially since the recent economic crises and recession have taken their toll on both individuals' and businesses' finances. Every year, many people experience devastating financial setbacks which seem impossible to get out of without some sort of legal help. Whether they have gotten deep in debt because they were uninsured when a medical crisis hit, because they experienced a job loss, or because of some other life-changing event such as a divorce or separation, most people who find themselves in dire economic straits are honest, hardworking folk who have simply fallen upon bad times. Bankruptcy protection may be the answer these individuals or businesses are looking for to get debt relief -- but is it the best answer? For some, filing for bankruptcy is the only answer.

If you are considering filing for bankruptcy, chances are you have already been riding an emotional roller coaster. Severe financial stress can cause feelings of anger, sadness, and even depression, and can also affect your self-worth, your self-esteem, and confidence. For many, a loss of money can also mean a loss of identity. It is considered one of the top five life-altering events that we can go through, and is often accompanied by one of the other top five life-altering events, which are job loss, divorce, death of a loved one, or a major relocation. So, what can you do to survive the emotional effects of bankruptcy?

First, understand that bankruptcy is not a death sentence. While it is true that a bankruptcy will remain on your credit for up to 10 years, chances are your credit's not in very good shape anyway, if you are considering this drastic step towards repairing your finances. And bankruptcy can help get you on the road to a better financial future because in most cases, it gives you a fresh start. Once you realize that your bankruptcy is not the end of the world, and that you can start over, you will then be able to set goals that will help get you back on track and keep you there.

Another thing to remember is that bankruptcy is out there for a reason, which is to help those who are drowning in debt to get out from underneath it and regain control of their lives. One shouldn't feel ashamed of taking solace in the protection that the bankruptcy laws offer. Also, because of the current economic times, the stigma that was once attached to bankruptcy is not a prevalent as it once was.

Bankruptcy can also be a positive thing if it helps teach you good financial stewardship. Although it can be difficult, bankruptcy can be a learning experience. It can be an opportunity to learn valuable skills when it comes to your finances, which will in turn help you rebuild your credit in the future.

It's also important to understand that just because you have been forced in bankruptcy does not mean that you are lazy, unmotivated, immature or irresponsible with your money. Financial woes can befall anyone, especially in troubled economic climates. Smart, honest, and hard working people who run businesses are also filing for bankruptcy. Just because one has issues with material worth doesn't mean that their self worth should be compromised.

Once your finances are under control, a greater sense of peace will naturally follow. Finally, understand that it is OK to feel anger, hurt, pain, resentment, sadness, shame and feelings of loss because of your bankruptcy or your financial situation. Yet it's also important to not let those negative feelings stand in the way of your financial future. If you're considering bankruptcy, the best thing to do is to learn everything you can about the process and your eligibility, and to take steps to ensure your future economic well-being.

The best person to help you as you begin this emotional journey is a bankruptcy attorney. He or she has been through the process many times before, and understands its emotional effects. They can walk you through the entire bankruptcy filing, from beginning to end, explaining all of its intricacies along the way and making sure that your rights are protected.

If you have decided to file for bankruptcy and you need help, it's best to contact an experienced bankruptcy lawyer or attorney to assist you with your case. To find a bankruptcy lawyer or attorney in your area, visit the American Bar Association (ABA) website. The ABA website features a lawyer locator, which allows the user to search through bankruptcy lawyer profiles and find an attorney whose experience will match your needs. Access to the site and profiles is free.


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