Be Aware of the Emotional Effects of Bankruptcy
Many individuals fear filing for bankruptcy because of the negative material effects of bankruptcy. When people file for bankruptcy, they may have many of their personal assets or belongings taken from them, earn a very low credit score, and/or have trouble receiving a loan in the future. They may face repossession or foreclosure.
It is very common for people who are struggling financially to experience severe depression and anxiety. They have been stressed for a very long time attempting to make ends meet. In most cases, they have worked hard in order to regain financial stability, but it is often impossible for an individual to dig themselves out of such a deep hole. The pressure of attempting to pay all of the bills, including the mortgage and credit cards, can become overwhelming.