Bankruptcy is often the best solution to financial trouble. It allows you to start fresh, erase your debts, and avoid foreclosure. However, the process of filing can be stressful for some people, while others feel anxiety around their financial situation as a whole. Understanding how to manage your emotions during a bankruptcy is crucial to getting through the process successfully. Here’s what you need to know before visiting an attorney. 

A Guide to Managing Bankruptcy Stress

1. Acknowledge Your Feelings

During the bankruptcy process, many people feel anxious about their financial situation and blame themselves for mistakes. The first step is to accept your feelings. Writing about your emotions in a journal or talking to a friend will help you process how you’re feeling.

However, it’s also important to remember not to be hard on yourself. Bankruptcy often occurs due to circumstances that are beyond the filer’s control. Realize that your own mistakes only play a small role in leading to difficult financial situations. 

2. Avoid Myths

Many people create extra nervousness by believing in common bankruptcy myths. For example, you might worry about permanently lowering your credit score, losing your car, or being fired by an employer. However, by working with a reliable bankruptcy attorney, you can separate fact from friction and save yourself from needless anxiety. In many cases, the situation isn’t as bad as the filer believes. 

3. Make a Plan for the Future

By taking the right steps, many people build up their assets and credit within two to three years of filing for bankruptcy. By carefully managing your finances and making smart decisions, you can reduce anxious thoughts about the future.

Start by creating a budget and setting attainable goals, such as opening a savings account or paying off your credit card bills on time. Next, start investing your savings for retirement. You may choose to contribute more to your 401K or invest in low-cost index funds. Finally, look for areas where you can cut back, such as canceling your gym membership or eating out less often. 

If you’re feeling stressed about your financial situation, contact the Law Offices of Harry G. Lasser. In addition to helping you file for Chapter 7 or Chapter 13 bankruptcy, this lawyer will assist you with rebuilding your credit and making smart financial decisions. Located in Putnam County, TN, attorney Lasser and his team have over 20 years of experience offering guidance to clients in difficult financial situations. Call (931) 372-9988 to speak to a staff member, or visit the firm online to learn more.