It can be a humbling experience to file for bankruptcy. You may always be in control of your finances, but an unexpected event or series of financial choices may have resulted in a debt that you cannot pay off. There’s nothing to be ashamed of; Many people file for bankruptcy every year, and it is designed to give you a fresh start. This is a good time to evaluate your spending habits and reconfigure your budget. You’ll also want to make some plans to help avoid debt in the future. An added benefit of filing for bankruptcy is that it makes you a resource to others who are struggling financially. Once your bankruptcy is resolved, you will most likely feel relieved and know that it was the best decision.
Encouraging Friends and Family
Bankruptcy is an experience that you will learn from, and you can use what you have learned to help others. Your friends and family will see the financial choices you make, such as saving for purchases instead of using a credit card. They will see the freedom and stress relief that comes with being free of debt and interest payments. If you have a friend who is in debt, you may be able to help them create a new budget that will prevent them from going bankrupt. Or they may be at a point where bankruptcy is their best option, and you can help them as they prepare to file. They will see how you came out better on the other side of the bankruptcy, and this can give them hope for their future as well.
Kids Learn by Example
Whether you are a parent or not, we all want the next generation to be successful and happy. It starts with education and encouragement, and most people learn best by looking at the examples of others. When children see adults working to save money and discipline in their spending, it becomes their norm and prepares them for a future with less debt. If you have children, you can help them create a budget or decide how they will save or spend the financial gifts they receive or the money they earn. You can also teach them to shop wisely and compare prices when you shop together.
After your family goes through a financial setback, it’s possible to come out stronger and more united on the other side. You may not choose to share all of your financial details with your children, but this is an opportunity to reassure them that you have control and take the necessary steps to ensure they are taken care of. Money is not necessary for a loving childhood, and all the lessons you teach your children today will shape who they are and what they value.
Make the Best Choice
Bankruptcy is nothing without first considering alternatives, but for many, it is the fresh start they need to get their finances back on track. Not only do these choices affect you, they can benefit the people you love and interact with. If you are unsure about how to handle your debt, contact me so we can come up with the best plan.