Bankruptcy stress can have a tremendous negative toll on a person’s mental and emotional well-being. Even though a bankruptcy filing may feel like a weight lifted off some people’s shoulders — that feeling is not shared by all. The accumulation of debt is stressful, and a bankruptcy filing is supposed to relieve that feeling.

So, why doesn’t it? Why does bankruptcy stress feel as intense or more severe than becoming buried by debt?

For starters, bankruptcy has negative social stigma and many people are embarrassed of having to make that decision. Oftentimes people’s credit lines are frozen and assets are seized and sold, a  feeling that doesn’t make the process any easier. If you are feeling the stress of your bankruptcy filing, then a proactive change in your mindset and outlook is necessary to get through bankruptcy with your sanity intact.

See the Positives in Your Financial Future

Unfortunately, filing for bankruptcy has an unnecessary negative social stigma. A bankruptcy filing does not mean that you will face financial ruin, simply that you are on track to better manage your debts. Agonizing over your financial setback will not help your situation. Instead, it is important to keep reminding yourself that you will have a fresh start with the mindset to regain control of your finances.

Make Positive Lifestyle Changes to Reduce Your Spending

One of the hardest parts about filing for bankruptcy is that many people have to seriously alter their lifestyles to accommodate their new budget. While throwing money around is often considered fun, it is not the only way to have fun or maintain an active social life.

One of the best ways to get through bankruptcy with your sanity intact is to find hobbies and activities that don’t require a steep budget. Exercising, cooking at home, hiking with friends, camping for travel, taking up photography, and picnicking are all examples of activities that won’t break the bank but can still bring significant joy to your life. Making these habitual changes will have a positive impact on your financial situation and may even bring you a sense of pride in making financially healthy decisions for your future.

Invest in Credit Counseling

Another strategy for maintaining a financially and mentally healthy lifestyle is to participate in a credit counseling course. Investing in credit counseling will give you the skillset to make financially sound improvements in your budget, money management, debt payment schedule, and improving your credit. 

A credit counselor works with a client over paperwork to relieve bankruptcy stress

An effective credit counselor will work closely with you to create a credit management plan so that you can pay off your debts and create a budget that works for you. Since credit counselors are experienced with people who have recently filed for bankruptcy, they have the necessary experience to get you back on your feet and help you understand that bankruptcy was the right choice.

Consider a Bankruptcy Attorney

For people who are uncertain if filing for bankruptcy is the best course of action for them, it is highly advised to speak with a bankruptcy attorney to discuss your financial future. Schottler Law of the Chicagoland area offers free 30-minute consultations for people interested in learning if bankruptcy is the right choice for their financial future

Mark Schottler is a Chicagoland attorney with over 20 years of experience working both in probate and estate planning law and in real estate law. He puts his extensive knowledge on these subjects into easily consumable articles that will help and advise the public. Mark Schottler has a passion for probate and uses this to create relevant articles that are informative and entertaining. *While these posts may detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.