Overwhelming debt and mental health issues are strongly linked. Financial difficulties can contribute to increased stress as well as anxiety disorders and depression. However, causation can also run the other way: Those with mental health issues may be more likely to make impulse purchases or bury their head in the sand rather than address financial issues directly. Often, debtors find themselves in a vicious cycle, and as debts worsen, depression and anxiety may become more severe.
It’s vital that those suffering from mental health issues seek help from a medical professional. But if you believe that your financial situation is making your mental health worse, you may wonder how filing for bankruptcy could affect your situation.
You may worry that filing for bankruptcy will make you feel worse because you consider it to be accepting defeat. You may also believe that you would not be able to cope with the administrative process and the discipline that bankruptcy may require of you. However, the act of filing for bankruptcy has been proven to have both financial and emotional benefits for many debtors.
How bankruptcy could improve your emotional well-being
The act of filing for bankruptcy is an act of courage. It is the commitment to improving your financial situation, meaning that you are taking responsibility for your own well-being and the well-being of others. For many people suffering from low self-esteem or depression, this can be a huge step in the right direction.
Additionally, bankruptcy is a process. The exact process that you will follow will depend on the bankruptcy Chapter that you file for. However, following the steps required of you can be emotionally beneficial for many debtors. Many see it as a manual for getting back on the right track. Debtors are also usually required to undergo credit counseling that can help them manage their finances better in the future.
When bankruptcy is successfully completed, the weight of debts will be lifted off your shoulders. Being able to live a life free of debts can help people make a fresh start and to create healthier habits.
If you are in a vicious cycle of debt that is affecting your emotional well-being, learning more about bankruptcy could help you to take positive steps forward.