Filing for Bankruptcy Doesn’t Have to Bankrupt Your Self-Esteem

Living paycheck to paycheck is very stressful. Filing for bankruptcy is even more so. So many people tie their self-worth to their net worth that dealing with financial pitfalls can take hard emotional tolls on one’s psyche. Just because you are having financial trouble, maybe even serious financial trouble, it doesn’t mean that you are less of a person because of it. You are still the same you that your friends and family know and love.

Nonetheless, bankruptcy wreaks havoc on your stress level. This if often because so many people put so much emphasis on money. Declaring bankruptcy can lead to low self-esteem, depression, anxiety, guilt, shame and even anger management issues. People are embarrassed by having to declare bankruptcy and tend to avoid others so as not to have to discuss it, but having a social network at such a time is crucial.

Getting Through It Emotionally

Bankruptcy is not the end of the world. It can feel like it has crushed your self-worth and self-esteem. While it may be a little out of whack at the moment, your emotional health is still intact. There are ways to handle the stress that comes with declaring bankruptcy and come out on the other side feeling okay about yourself. Try these:

• You are not alone. Financial setbacks occur in almost everybody’s life, and chances are that people will be able to identify with your predicament more than you think.
• You were probably not taught how to handle money when you were younger, so you never had a financial plan in place. Let go of the past. You can’t do anything about it. But now that you know how not to handle your finances, take solace in the fact that now you can start making a solid plan of how you should handle them in the future.
• Try to figure out where the chinks in your financial armor are, the ones that got you into trouble. Take some time to learn about them so that you can protect yourself from those pitfalls again.

It’s not necessary to get down on yourself for declaring bankruptcy. More than one millionaire has experienced monetary setbacks on the way to financial success. It takes some gumption, but you, too, can learn to get up and start again. And there is the sense of relief that comes with finally being out from under the yoke of financial burden.

Other Options

If your emotions are getting the best of you over having to file bankruptcy, one option is to pursue counseling. A counselor can help you deal with your present situation and help you work toward preventing future financial hardship. There are also support groups for people dealing with bankruptcy and similar money issues. Regularly attending a support group can help you realize that you are not alone in your predicament, and can help you learn from others how they are handling their situations.

A Fresh Start

When you declare bankruptcy, you may feel as if your world has ended. And in a way, it has —  your mountain of debt has gone away. Now it is time to start shaping yourself a new world. Get a financial advisor and whatever other help you think you may need and start planning a happier, more successful life.