The emotional fallout after bankruptcy is something few people discuss. The process and overall experience of bankruptcy is stressful. This stress from bankruptcy can leave you feeling depressed, ashamed and the resulting strain to your personal, social and professional relationship can feel unbearable. Dealing with this stress is no simple task, no matter how bad your personal finances were in the first place.
When buried under a pile of debt and creditors are calling with collection demands, bankruptcy seems like the only possible option. Although you almost always have options to avoid bankruptcy – like credit counseling and alternative repayment plans – you should know up-front what the psychological fall-out will be and brace yourself for the stress from bankruptcy. Often, this stress will not become evident for several weeks and months following the discharge.
Since bankruptcy will not eliminate all debts, dealing with the fallout of bankruptcy often proves difficult and never-ending. Since bankruptcy gets recorded on your credit history for a period of up to ten years, it is not only nearly impossible to obtain credit, but potential employers are likely to conduct a background check before extending a job offer that can have a long-term, positive impact on your financial status. With a bankruptcy, securing that better job might become impossible.
If you are looking for ways to manage post-bankruptcy stress, there are a few things you should do. First, allow yourself to accept that you are experiencing stress and that, sometimes, severe stress requires medical assistance in order to be dealt with.
Next, you should consider sharing the details of your financial situation with the people you are close to, such as family and your best of friends. Realizing that most people do not publicly discuss their personal finances, you will most often be surprised by the advice and emotional support these close friends and family can offer. In a worst-case scenario, they will allow you to talk about matter and this alone will help you cope with your situation. If friends and family are unwilling to lend an understanding ear, consider sitting down with a counselor. The idea is to talk about your situation as this is a time-tested technique that helps when dealing with all kinds of stress, not just finance-related stress.
The next step is to have a sound plan for your finances. After bankruptcy, you can often get a new beginning. Put plans in place to protect your finances and your sanity. Establish a savings plan that will allow you to better absorb financial strain in the future.
With the financial side of your life dealt with, look to optimize the non-financial areas of your life so that your mind and body are better able to handle stress. This might include adopting a healthier diet and becoming more active – diet and exercise are known to reduce stress levels. As well, consider reading non-finance related books and replacing them with motivational books instead.
In most cases, bankruptcy occurs due to avoidable circumstances. Only in some cases are the circumstances are beyond your control, but that is not something that can be changed following the discharge. With a go-forward attitude, you will realize that there is no point in blaming yourself or feeling guilty. Try your best to relax and to enjoy activities that you like now that you do not have bill collectors calling at all hours.
