UPDATE: Bankruptcy and Mental Health: Battling Negative Emotions

 Posted on February 22, 2022 in Bankruptcy

Originally published: August 6, 2014 -- Updated: February 22, 2022

UPDATE: As discussed below, there are a variety of negative emotions that are associated with bankruptcy, and in some cases, these may lead people to take inadvisable actions or engage in behavior that will affect their ability to maintain financial stability. However, some of these negative emotions may be avoided by understanding the purposes of bankruptcy and the reasons why people seek relief from their debts. By working to eliminate the stigma associated with bankruptcy, people can approach this process in a more positive manner.

It is important to remember that bankruptcy is a right that is afforded to people in the United States, ensuring that they can receive a fresh financial start if they are in a difficult situation. Filing for bankruptcy does not necessarily mean that a person has been financially irresponsible or that they are to blame for the problems they are experiencing. In fact, most people who file for bankruptcy do so because of circumstances that are out of their control. The unexpected loss of a job, health issues that prevent a person from earning an income, or large medical bills are all issues that can put someone in a difficult financial position and make it impossible to repay their debts. In these cases, bankruptcy can relieve a person and their family from a financial burden that they could not have avoided. Taking advantage of the laws to receive relief from debts should not be an issue that reflects on a person’s character.

One way that you can avoid stress and difficulty during the bankruptcy process is by working with an attorney. With a legal advocate on your side, you can gain a full understanding of the requirements you will need to meet and the ways bankruptcy will affect your finances. At the Law Offices of Chance M. McGhee, we can ensure that you will be able to receive the debt relief you deserve. Contact our San Antonio bankruptcy lawyer at 210-342-3400 for a free consultation.

Filing for bankruptcy can be one of the most emotionally and psychologically straining times in a person’s life. While dealing with attorneys, the court, and creditors, he or she is simultaneously trying to rebuild his or her economic stability and livelihood. Yet the stress and other related issues naturally increase.

Bankruptcy can be devastating to one’s psychological well-being and even perpetuate the problem in other ways. The unpleasantries and feelings associated with the bankruptcy process are far reaching and can have many negative effects. In fact, the economic constraints associated with bankruptcy can cause loss of emotional control, anxiety and depression, and relationship problems. Often, this is a direct result to the sense of shame that many carry with their bankruptcy proceedings. Consider the following psychological consequences bankruptcy and financial hardship can cause.

Problems with self-esteem: Many people associate their monetary worth with who they are as a person, and subsequently feel as if they failed themselves or loved ones. Low self-esteem opens the door for depression, anxiety, and isolation due to a sense of guilt and shame.

Perpetuation of the problem: The anxiety and depression brought on by bankruptcy often causes impulsive behaviors. These include behaviors like gambling and overspending. Some may purchase beyond their means when under duress to compensate for their low mood. Unfortunately, this can easily complicate bankruptcy cases and can be detrimental moving forward.

Physical manifestations of psychological problems: Stress and anxiety release an excess amount of hormones that can cause physical symptoms. Some common physical manifestations are muscle spasms and tension, chronic headaches, back pain, and teeth grinding. Stress can also lower your immune system, thus making it more difficult to fight off illness.

The negative results of bankruptcy certainly extend far beyond financial constraints. Bankruptcy can be devastating to emotional stability and result in mood problems and physical ailments in the long and short term. However, consulting a professional and caring San Antonio bankruptcy attorney can help prevent some of the stressors associated with bankruptcy and mental health.