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How do you tell your loved ones you are declaring bankruptcy?

On Behalf of | May 19, 2024 | Chapter 13 Bankruptcy

Filing for bankruptcy is a personal decision. However, its consequences may be felt by your loved ones. Accordingly, it may be wise to discuss your decision with them. 

It can be challenging to initiate such a discussion, as you may still be wrapping your head around it but these three tips can help you:

Address bankruptcy stigma

One of the reasons discussing bankruptcy with loved ones can be difficult is the thought of being judged. Thus, whether or not you feel like your loved ones will judge you, consider addressing bankruptcy stigma earlier. Tell them you are not skipping out on your responsibilities. Instead, declaring bankruptcy is integral to planning your next moves. 

It can also be beneficial to inform them that bankruptcy is not uncommon in the country. A total of 452,990 bankruptcy filings were reported by December 2023. Let them know this is not something that has befallen their family only. 

Focus on the benefits

Your loved ones need to understand how declaring bankruptcy will benefit you. Chances are they have heard a lot about bankruptcy, both realities and myths. Hence, they may be concerned about your decision. Discussing the advantages of filing for bankruptcy can ease their minds.

Discuss the future

What are your plans? How will you recover your financial independence? These are a few questions your loved ones may have after telling them you are filing for bankruptcy. Provide realistic answers and include them in creating a new financial plan.

While you may want to go through bankruptcy alone, your loved ones may be affected by it. Holding a conversation with them is a crucial step. You should also consider seeking legal guidance to safeguard your future.