Depression and Bankruptcy

February 23rd, 2017

Depression and Bankruptcy can very often go hand in hand.   Bankruptcy is a financial state where you can no longer meet your obligations and payments.  It is stressful, taxing, and a huge strain on the debtor and the debtor’s family.   Bankruptcy laws provide that a person can file for protection under Title 11 for bankruptcy relief under either Chapter 7 or Chapter 13.

Chapter 7 bankruptcy is considered a discharge of unsecured debts.  Chapter 13 is a payment plan of your debts.   In either case, the bankruptcy laws protect you from creditors.   However, the laws do not address the mental challenges associated with bankruptcy.

Depression and Bankruptcy

Bankruptcy can create many emotions, and depression can be one of them.   When we cannot pay our debts, we can feel weak, stressed, sad, and burdened.  Bankruptcy laws can help you overcome the technical aspects of not being able to pay your debts, but it is important to also pay attention to your emotional and physical well-being during the process.   Meeting with a bankruptcy attorney is a good first step to determine your options and help you relieve some stress by learning what you can do.   Bankruptcy does not carry the stigma it once did in society.   Many people of all income and job levels, many businesses, even famous people, file bankruptcy all the time.

This post is not intended to provide mental counseling or advice on depression.  It is only intended to help people facing bankruptcy to realize they are not alone.   If you are a debtor, filing bankruptcy can be a great choice.   Just remember to take care of yourself so that once your bankruptcy is finished, you get a fresh financial start with a healthy mind and body too.

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