Even the most responsible individuals can run into financial hardships. These problems can sometimes go so bad that they cannot get out from under them and one of the solutions they turn to is filing for bankruptcy. Filing bankruptcy can certainly bring many negative emotions. The sense of worth, identity, and self of a debtor are often closely tied to their financial position. Loss of money can hence be experienced as a loss of confidence, self-esteem, and identity. However, there are ways to overcome the challenges that arise during personal bankruptcy.
Here are 4 biggest challenges that come up during a personal bankruptcy case and how to overcome them:
Adjusting to New Realities
When people file for bankruptcy, they feel like that their whole foundation has been shaken. They question their trust in themselves as well as in others. Adjusting to new realities is probably the biggest challenge for most people during a personal bankruptcy case. To overcome this challenge, one shouldn’t bury their frightening emotions, instead they should bring these insecurities to a sensible level. By doing that, they can actually diminish the feeling and fear of being out of control and start addressing the situation in a positive manner.
Getting Back Up
There are many negative emotions associated with personal bankruptcy. You may feel weak and all alone. Getting back up would feel like one of the most difficult challenges to overcome, particularly if you are not mentally and emotionally prepared. Fortunately, there are networks of support groups and experts that can help you get through your problems. Experts in this field can help you address your bad decisions and habits, as well as give counseling on how to get your finances back in order.
Your assets getting confiscated is probably the biggest downside of filing for bankruptcy. When it happens, getting access to credit cards and other forms of credit can become very challenging. Reliance on cash becomes your only way to go at this point. However, if you look at the positive side, you will realize that this presents an excellent opportunity for you to evaluate your bad decisions and habits when it comes to your finances. So, use this chance to establish discipline and keep track of your spending patterns in a more direct, organized manner.
Dealing Constructively with the Situation
Personal bankruptcy is not the end of the world. You can come to terms and deal with this specific situation constructively if you work toward the following goals:
• Exercise self-compassion. Personal bankruptcy may feel like your life is over, you should see it as an opportunity to start fresh.
• Let go of blame and resentment.
• Experience the feelings of shame, sadness, anger, depression, and loss, and in time be able to let go of these feelings and move on.
• Learn to detach material wealth from self-worth.
• Learn new skills to protect financial wellbeing in unexpected economic times.
• Learn from experience. Take steps to ensure future financial security.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.