Surviving the Emotional Toll of Bankruptcy

Maybe money can’t provide happiness,Going Bankrupt1 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.

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One thought on “Surviving the Emotional Toll of Bankruptcy

  1. Great post, Daniel. My parents are awfully close to bankruptcy, what with two mortgages and a mountain of credit card debt (it’s a long story). My plan is, if nobody else will buy the other property, I’ll pay cash for it myself, and take it off their hands.

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