5 Tips for Dealing with the Emotional Stress of Bankruptcy

It's often said that money can't buy happiness, but it can certainly inspire negative emotions such as sadness, embarrassment, fear, and stress. You may put off filing for bankruptcy if you're feeling any of these emotions, but it's important to remember that bankruptcy is a financial strategy designed to give you a fresh financial start and that all of these emotions are a normal part of the process.

When you begin filing for bankruptcy, you may think that you're instantly going to get out of all of your problems and that you'll have a fresh new start right away. This is partially true because most, if not all, of your debt, will be discharged, and you'll have the opportunity to live a debt-free lifestyle. However, dealing with the emotional stress that comes with filing for bankruptcy can leave you feeling alone with no place to go. By dealing with the emotional stress correctly during bankruptcy, you'll be able to enjoy your debt-free lifestyle after your discharge. Here are some ways that can help you deal with the emotional stress of bankruptcy:

1. Acknowledge Your Situation

The first thing you should do is to acknowledge that your bankruptcy is going to be a stressful event in your life. You may feel guilty at first for allowing the stress to interfere with your life, but it's important to remember that all of your feelings are a normal part of filing for bankruptcy. Allowing yourself to acknowledge these emotions is necessary for letting go and starting a new financial life. At the same time, you may feel overwhelmed by all of the information being put before you. It's ok, just take it piece by piece. No one is asking you to become a bankruptcy wizard overnight. Take your time and it will make sense.

2. Maintain an Exercise Regimen

Exercising at least 30 minutes a day can help you maintain your emotional health during stressful times. Exercise has been proven to enhance your mood and reduce stress, and it gives you an opportunity to let go and forget about your bankruptcy for a little bit. Plus, it should help you get some sleep at night.

3. Talk With Friends or Family

Many people are embarrassed when they file for bankruptcy and often avoid talking to friends and family. However, talking to the people closest to you is often a great way to keep your stress levels down. Hiding your emotions from the people who love you the most will only create more stress. Simply talking about your feelings and what you're going through can help you let go of the stress surrounding your bankruptcy. You may be very surprised to find out exactly how many people have filed for bankruptcy themselves, people who you never thought ever had a financial problem.

4. Talk With a Therapist

If you aren't comfortable talking to friends or family, or if you don't have any close friends or family you can talk to, don't be afraid to reach out to a therapist. A therapist who specializes in financial stress-related issues such as bankruptcy can act as not only a sounding board, but they can also provide you with suggestions and strategies for helping you cope with your emotions. This option is very important as many individuals simply cannot go to friends or family with their problems.

5. Develop a Financial Plan

At some point during the bankruptcy process, it's important that you develop a financial plan, create a budget and set financial goals for your future. Bankruptcy will give you a fresh start without the pressure of dealing with creditors, and it's essential that you put a financial plan in place that will give you a stable life after bankruptcy. I cannot stress the importance of this tip. Setting the stage for your future is a must. The creditors will be there after your bankruptcy trying to suck you right back into their game.

Making the decision to file for bankruptcy isn't always easy, but doing so often proves to be incredibly beneficial. If you're scared to file for bankruptcy because you're afraid of the toll it will take on your emotional health, there are steps you can take to prepare yourself for bankruptcy. By following the tips above, you'll be able to better manage the stress that is often associated with bankruptcy.