Moving Forward From The Emotional Fallout Of Bankruptcy

Posted on: 8 March 2016

For those who are the end of their financial ropes and feel they have no choice, bankruptcy is not the easy way out but is instead a decision born of desperation. Dealing with creditors and stressing over unpaid bills may come to an end once your bankruptcy paperwork is filed with the court, but the emotional ramifications of your decision and the dread of an uncertain financial future can soon cause an entirely new set of problems. To get the most positive result from a bankruptcy filing, you must take advantage of the fresh start provided, learn from your past mistakes and move forward. To learn more about how to recover from the emotional fallout of bankruptcy read on.

An Initial Sigh of Relief

Often, simply meeting with a bankruptcy attorney will provide you with enough hope that you will likely heave a sigh of relief at being able to share your burden with a legal professional. That relief will increase once your bankruptcy petition is filed with the court when the automatic stay granted by the bankruptcy will put an immediate stop to most all debt collection activities. For the first time in ages, you may now feel that you can begin to plan for a better financial future.

Dealing with Negative Feelings

Sometimes negative feelings about your self-worth continue to simmer underneath, however. It's only natural to question how you allowed your financial situation to get so desperate and begin to doubt your ability to make good decisions. You should understand that these negative feelings can affect your ability to sleep, your eating habits, your mood and more. How you choose to handle these bad feelings can make the difference between a continued downward spiral and turning your bankruptcy into a learning experience. 

You Are Not Alone

You likely feel isolated, alone and ashamed of your poor financial status and, as a result, you may attempt to hide your feelings. Don't allow your embarrassment keep you from seeking professional counseling, and also know that many people find themselves in your particular situation. In fact, some 936,795 people filed for bankruptcy in 2014. You can break that figure down to approximately 19,000 people per state. You are likely surrounded by other people just like yourself.

Set Some Positive Goals

You can and will recover from bankruptcy, so instead of wasting valuable time beating yourself up about past poor decisions, spend some time evaluating how to make better financial moves in the future. For example, educate yourself about budgeting, putting aside money for emergencies and how to use credit more wisely (and yes, you will get a chance to use credit again) in the future.     

While some of the financial issues that led to your bankruptcy may at first appear to have been unavoidable, an honest assessment of what could have been done to prevent the problems is vital. For example, large medical bills have caused many people to end up in bankruptcy court, but having some money set aside and choosing a more comprehensive medical plan could prevent future issues.

Above all, treat yourself gently and allow yourself plenty of time to process your emotions and recover from bankruptcy. Consult with a bankruptcy attorney (such as one from Law Office of Michael Alfano) for more information about how to get relief through bankruptcy and begin to make your fresh start.