Tips for Handling with the Emotional Toll of Bankruptcy

When it comes to filing for bankruptcy, many Chicago residents worry about the stigma and the emotional toll associated with personal bankruptcy.  As such, a recent article in Forbes provides tips for “coping with the emotional cost of bankruptcy.”
For debtors across the country, consumer bankruptcy can be the best option when you’re facing medical bills that won’t stop piling up, a mortgage you cannot afford, substantial credit card debt, and other monthly payments.  If you’re having difficulty paying off your debts and are dealing with serious anxiety issues as a result, filing for Chapter 7 or Chapter 13 bankruptcy could be a solution.
Yet it’s important to know that filing for bankruptcy can have emotional costs that you might not predict.  An experienced Oak Park bankruptcy lawyer can examine your situation and discuss your best options with you today.
Losses in Bankruptcy
When you file for personal bankruptcy, you’re going to have the benefit of wiping away or restructuring your debts, depending on whether you file for Chapter 7 or Chapter 13.  However, consumer bankruptcy can also mean “the loss of a precious possession, one that may have taken years, perhaps even decades, to create,” according to Forbes.
What can you lose when you declare bankruptcy?  You’ll be able to exempt certain property when you file, but you may lose other possessions.  Specifically, if you’re a business owner, you may lose a company that you’ve spent a number of years creating.  And the loss of such a large part of a consumer’s life “can have a devastating impact on mental health.”  Additionally, some debtors who choose to file for bankruptcy fear that they’re being judged by their friends and family for their decision.  
In short, bankruptcy can lead to significant emotional issues that can affect a consumer’s quality of life.  And if you’re dealing with a serious psychological toll from bankruptcy, you may have difficulty handling your finances in the future.  So, what can you do?  According to the article in Forbes, keeping four tips in mind may help you to cope:
·      Understand that bankruptcy may be the best option for you: whether you have a business that’s underwater or you have more credit card debt than you can keep up with, filing for bankruptcy can be a very good option for debtors who are overwhelmed by the money they owe.  Indeed, some bankruptcy specialists suggest that filing for personal bankruptcy can be “therapeutic,” as the stress associated with debt is over when the bankruptcy filing is complete.  Consumer bankruptcy can be very complicated, so it’s important to have a Chicago bankruptcy lawyer who can properly advise you.
·      Hire a bankruptcy lawyer you trust: when you have people on your side who are dedicated professionals, you’ll feel more secure with your bankruptcy filing and with your decision.
·      Own your feelings: you’re not the only one who feels that they’ve suffered a serious loss—of property or of self-confidence—with the decision to file for bankruptcy.  It’s important to accept the emotions you’re feeling and to begin thinking about your life after bankruptcy.
·      Speak to a mental health professional: if you’re having trouble dealing with the emotional effects of bankruptcy, speaking to an expert can help you to see beyond your immediate feelings.  In many cases, speaking with a therapist can be just as important as talking with a qualified bankruptcy lawyer.
Contact a Chicago Bankruptcy Lawyer
If you have questions about filing for bankruptcy in the Chicago area, don’t hesitate to contact an experienced Chicago bankruptcy attorney at the Emerson Law Firm.  We are dedicated to helping consumers and can discuss your situation today.
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