People often file for bankruptcy when they are in the depths of despair. Their financial circumstances are clearly unsustainable, and they may be on the cusp of litigation that could cause long-term economic harm. Personal bankruptcy can prevent a lawsuit from going to trial and could help people regain control over their budgets. They may be able to discharge some of their unsecured debts to free up money for other important financial obligations.
Bankruptcy doesn’t just provide financial relief. It can also give people hope at a time when they may have despaired of improving their circumstances.
Filing for bankruptcy can inspire hope
The pressure related to unsustainable debt levels often builds gradually. The frequency of collection calls and the amount owed to different creditors may slowly but surely increase over time. People may not notice how much of their mental energy goes toward worrying about their circumstances or how much it affects their mental health.
It is only after securing the relief of an automatic stay and then later a discharge that people truly feel free from their burdensome financial obligations. Some people may notice an immediate improvement in their mental health as they no longer feel anxious or depressed after filing for bankruptcy. They may also begin to feel more hopeful about the future when the future is no longer defined solely by the increasing likelihood of aggressive collection activity.
Bankruptcy can help people feel better about themselves too. People facing financial hardship often beat themselves up and blame themselves for their circumstances. While it is important to take responsibility for mistakes and poor financial management, many people end up filing for bankruptcy due to factors beyond their control.
A sudden divorce, job loss or unexpected medical challenges can push people to the financial brink and make bankruptcy the best option available given their circumstances. Those who take control by filing for bankruptcy may have an easier time forgiving themselves and improving their sense of self-worth because they have addressed their financial difficulties to the best of their ability.
Instead of waiting for things to get even worse, it is often beneficial for those facing extreme financial challenges to focus on the future by filing for bankruptcy and taking control of their circumstances. A successful bankruptcy can provide both relief from financial burdens and hope for the future.
