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Bankruptcy can take an unspoken emotional toll on many people

On Behalf of | May 13, 2016 | Chapter 7

While bankruptcy can bring financial relief to many Tennessee residents, there is often not a lot said about the psychological and emotional repercussions it can have on a person. The shame some people feel from drowning in debt leaves their self-esteem in shambles long after the bankruptcy has been discharged, according to U.S. News & World Report.

Many of these fears may be unfounded and could perhaps be fought with better educating people about the bankruptcy process, some experts argue. For instance, some bankruptcy filers are afraid that filing for Chapter 7 will destroy their credit forever, when that simply is not true.

In addition, having access to a sympathetic attorney or a therapist who specializes in treating people with financial troubles could help alleviate some people’s worries. Emphasizing the starting over aspects of a bankruptcy as opposed to dwelling on past failures could go a long way in changing how people view bankruptcy.

However, altering people’s outlook on personal bankruptcy make take some time. According to Psychology Today, not paying one’s mortgage is considered immoral by 81 percent of people in the United States. This negative perspective stands in harsh contrast to the way that corporate bankruptcies are often viewed. While a company who files for bankruptcy may be seen as making a savvy business move, people or couples who file for individual bankruptcy are often viewed as failures. Perhaps if people thought of themselves more like corporations, it is suggested, then they would be willing to let go of some of the emotional baggage that goes along with filing for bankruptcy.


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