How Bankruptcy Can Affect Your Emotional State

Filing for bankruptcy can be an emotionally trying time for many people. Even though the stigma of bankruptcy has disappeared, to a certain extent, most people who end up filing still feel somewhat depressed and embarrassed that they had to go through it.

If it seems like more and more people are filing for bankruptcy - it's not just your imagination. In the past year along, the number of people filing for bankruptcy has exceeded one and a half million people. When asked why, the two reasons that came up most often were the loss of a job or sudden ill health in the family that caused their savings accounts to be decimated. And, actually, even just one of these reasons could, by itself, emotionally bring a person down.

The act of filing for bankruptcy is sort of the final emotional nail in the coffin where the person has to admit to himself that he has been a failure in managing the financial resources for his family. According to many mental health experts, filing for bankruptcy can affect the mental health and stability of a large percentage of those people.

There is a simple reason why. Most people have their self image wrapped up in how well they do financially. But once they lose their financial success, they often lose a large part of their self worth and self respect as well.

And this feeling of failure can negatively affect the entire family. Married couples often have minor problems affecting them. And, in many cases the emotional problems caused by the bankruptcy filing can exacerbate existing problems in the relationship. Money problems are already one of the biggest problems listed by couples in a marriage. Having to file for bankruptcy, takes those problems to another level. In fact, many times the only thing holding a couple together that is going through rough financial times is that neither one has the money to move out on their own.

As bad as a bankruptcy is for a married couple, for a single person, it can be even worse. In the case of single people or people living alone, a bankruptcy filing can lead to severe depression. One that is likely to deepen if that person is unable to get a job or find another source of income. More and more you hear stories of homeless people with college degrees who are homeless because they ran into financial problems.

Because of depression, many have simply given up. After a period of being rejected for jobs, many simply drop out of society and no longer even attempt to find work any longer.

Bankruptcy is meant to give the person a new lease on life by eliminating many of his debts. But, in order to start life anew, a person has to be in the right mindset. If he lets himself be taken over by feelings of shame, guilt, and a lack of self esteem, he may never recover his footing.

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