In many households, kids aren’t usually included in matters concerning the family finances. But when parents have to file for bankruptcy, children will likely pick up on the effects of this debt relief strategy. Depending on your child’s age, you can have a careful conversation to help them navigate these changes without fear or anxiety. Here are a few tips to consider before diving into the discussion.
4 Tips for Talking to Your Kids About Bankruptcy
1. Keep It Simple
Try to explain bankruptcy in an age-appropriate way, and keep complex, overwhelming details out of the discussion. For example, instead of explaining the complicated process of foreclosure, you might say that since you couldn’t afford the house, the bank had to buy it back.
2. Focus on the Future
In some cases, children may interpret bankruptcy as something that is going to bring on difficult times. To steer your kids away from these thought patterns, discuss bankruptcy as a necessary step to improve your future. Through debt relief, for instance, your family can gradually build better finances and make life less stressful down the road.
3. Address Changes in Spending
Bankruptcy requires most families to reduce unnecessary expenses, such as going on vacation or having lavish holiday celebrations. Highlight these changes ahead of time so your child isn’t surprised by the sacrifices you’ll have to make.
Or, if you have a teenager, you might encourage them to get a part-time job so they can have more of their own spending money.
4. Make Sure They Know They’re Not at Fault
Without an explanation, kids may believe they’re responsible for the need for bankruptcy, such as by asking for toys or needing new school clothes. To avoid unnecessary feelings of guilt, remind your child that parents are solely responsible for family finances, which is why you’re taking steps to correct the problem.
The more confident you feel about the bankruptcy process, the easier it can be to discuss the matter with your family. That’s why many Oahu residents turn to Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu, HI. Having managed more than 12,000 debt relief cases since 1996, Dunn is well-versed in strategies that can streamline the filing process according to your situation. To learn more about how this Hawaii debt attorney will help alleviate the burdens of bankruptcy, visit his website or call (808) 524-4529.