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Dealing with the Emotional Side Effects of Bankruptcy

Updated on February 27, 2013

In your mind, you know filing for bankruptcy is the right decision for you.  You must take the logical step to relieve yourself of a burden that is crushing you and permit yourself to crawl out from under that load and begin anew.  Your mind knows this is a reasonable solution to your problem, but your heart is having a harder time accepting the fact.  It is vital that you confront these emotional and psychological issues in order for you to start to rebuild your financial life, but how do you deal with the emotional side effects of bankruptcy?  

Confront Your Negativity

When someone files for bankruptcy, it is not uncommon for him or her to feel a sense of failure. Since many of us judge our success or failure by our financial standing, our self worth lowers when we find ourselves in a position we didn’t choose. Self-confidence wanes and self-esteem shrinks. We feel out of control and experience a lack of trust in our abilities and for the world at large.

Those emotions are not beneficial to anyone. If they are allowed to continue, they will hurt your chances for a brighter future. A few days of mourning for your financial losses are acceptable, but then you must find a way to create a more positive attitude. Once the mourning period is over, refuse to allow yourself to indulge in feelings of anger or self-pity any longer.

Begin by reminding yourself repeatedly why the bankruptcy laws were created. The courts realized that sometimes things happen that are out of people’s control. Many people who file for bankruptcy in Minnesota have been placed in that position through no fault of their own. Bankruptcy was designed to help citizens get past that point and go on to lead a successful life.

Remember, you are not alone. Many honest, intelligent people have needed to take advantage of bankruptcy protection, including celebrities and even US presidents. Abraham Lincoln actually filed for bankruptcy twice in his lifetime.

What is Bankruptcy

Give it a Positive Spin

Focus on the advantages of bankruptcy. You now have the opportunity to start fresh. You will no longer have to deal with the constant harassment of creditors or worry about having your wages garnisheed. You don’t have to be afraid to answer the phone or go to the mailbox. That alone eliminates an enormous amount of stress in your life. You can breathe again.

Take the opportunity to learn new financial management skills. Talk to a financial counselor and learn how to establish a budget. Set reasonable financial goals and challenge yourself to meet them. Break old habits like buying yourself something new when you’re feeling down. Learn new ways, such as exercise or a hobby, to deal with stress. Most important of all, maintain a sense of humor. Positive emotions play a definite role in maintaining our physical health and no amount of money can replace that.

No one likes the idea of filing bankruptcy, especially since Minnesota bankruptcy law can be so confusing.. It can play havoc with your emotions. Even though you may feel like your life has spun out of control, remember, it is only temporary. This is a new beginning for you. Take a deep breath, relax and make the most of it. It won’t be easy, but you can do it.

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      Cindy 7 years ago

      Thank you for writing this article! I really feel like my life is out of control and my self-esteem has hit rock bottom. I will read this article repeatedly just to help with the feeling you have described.

      thank you!