The emotional effects of bankruptcy can be substantial. For most people, filing bankruptcy is a last resort. The average person believes that they have a moral as well as a legal obligation to pay their bills and have difficulty reconciling those beliefs with the reality of their financial situation. Because most people tie their self-worth to their finances, filing bankruptcy can result in:
- Loss of self-worth and self-esteem;
- Depression;
- Anger;
- Guilt;
- Embarrassment;
- Humiliation; and
- Loss of identity.
This array of emotions can impact a debtor’s interpersonal relationship. Moreover, they can affect his work relationships as well as his work performance.
The Stress Caused by Financial Problems
Many of the emotions and feelings associated with filing bankruptcy are also associated with being overburdened by debt. The aggressive collection efforts of creditors only add to a person’s stress and emotional distress. Moreover, many people who are struggling to pay their bills experience a number of other symptoms that can have a negative impact on their overall health and quality of life. These symptoms include:
- Loss of appetite;
- Overeating;
- Sleeplessness;
- Headaches;
- Increased blood pressure; and
- Increased use of drugs and alcohol.
The Fresh Start Afforded by Filing Bankruptcy
The purpose of the Bankruptcy Code is to afford people struggling with debt a safe haven in which to resolve their financial issues and to give a debtor a fresh start. As embarrassing and humiliating as filing bankruptcy may be, it can lift a huge burden from a debtor’s shoulders by virtue of the automatic stay. The automatic stay prevents a debtor’s creditors from making any collection efforts against him. So, the harassing phone calls and letters will stop almost immediately. This alone will relieve a certain degree of a debtor’s stress.
A debtor can come to terms with his decision to file bankruptcy by looking at the big picture. If he had no other means of resolving his financial problems, where would he and his family have ended up had he not filed bankruptcy? As he gets his finances in order after filing bankruptcy, the average debtor begins to feel at peace with his decision.
Getting Legal Help
If after much soul-searching you have decided to file bankruptcy, you should hire an experienced bankruptcy attorney. There is so much at stake and having a knowledgeable bankruptcy attorney on your side is the best way to ensure that you get the fresh start you deserve.
