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The Impact of Bankruptcy on Mental Health

The Impact of Bankruptcy on Mental Health
"""For many people, declaring bankruptcy can be an emotionally trying moment. Even though the stigma of bankruptcy has diminished to some extent, the majority of those who end up filing still feel despondent and ashamed that they had to endure it.

In the past year, more than one and a half million individuals have filed for bankruptcy. The two most frequently cited reasons for declaring bankruptcy are job loss and family illness that depletes savings accounts. By themselves, either of these factors could depress a person emotionally.

The act of filing for bankruptcy is akin to the final emotional nail in the coffin, as the individual must acknowledge that he has failed to manage his family's financial resources. According to numerous experts in mental health, registering for bankruptcy can negatively impact the mental health and stability of a substantial proportion of individuals. This is because many individuals' sense of self-worth is tied to their financial prosperity in life. And once they lose their financial prosperity, they lose a substantial amount of self-esteem.

In the case of married spouses or couples, filing for bankruptcy can frequently exacerbate pre-existing problems in the relationship. Money issues are already one of the top concerns cited by married couples. Filing for bankruptcy escalates these issues to a new level. Oftentimes, the only thing keeping a couple together during difficult financial circumstances is that neither partner can afford to move out on their own.

In the case of unmarried or solitary individuals, a bankruptcy petition can cause severe depression. One that is likely to worsen if the individual cannot obtain employment or another source of income. You hear more and more accounts of homeless individuals with college degrees who became homeless due to financial difficulties. Due to despondency, many individuals have simply given up. After a period of employment rejections, many individuals simply withdraw from society and give up looking for work.

The purpose of bankruptcy is to give a person a fresh start by eliminating the majority of his debts. To begin a new existence, however, one must have the proper mindset. If he allows feelings of humiliation, guilt, and low self-esteem to consume him, he may never regain his footing.

" - https://www.affordablecebu.com/
 

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"The Impact of Bankruptcy on Mental Health" was written by Mary under the Finance / Wealth category. It has been read 187 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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