Maybe money can’t provide happiness, but it can certainly inspire negative emotions, including sadness, grief, and shame. Those are just a few feelings people may experience when they claim bankruptcy.
While the financial consequences of bankruptcy are disconcerting, the mental burden can be overwhelming, with wide-reaching effects. “It’s important to acknowledge the act of filing bankruptcy can be psychologically difficult, cause stress on relationships, and even be traumatic for a family,” says Joseph Goetz, president of the Financial Therapy Association.
The focus is often on the financial steps—compiling a comprehensive list of debts, hiring an attorney, seeing the case through—but neglecting the emotional aspect can have long-term consequences. Many people who turn to bankruptcy have juggled their debt for so long that they’re emotionally exhausted by the time they’re ready to file. Click here to learn how bankruptcy filers can set themselves on the path toward emotional recovery.