Did you know that 2021 saw 92,572 insolvencies filed with the Office of the Superintendent of Bankruptcy in Canada?
Bankruptcies exist to elevate the financial pressures associated with insolvency, taking the pressure off, and helping you work towards financial independence. Unfortunately, bankruptcy often comes with significant emotional stress. Yet, it doesn’t have to be this way.
In this article, Crowe MacKay & Company’s Licensed Insolvency Trustees in Vancouver and Surrey will explain how to cope with the emotional stress of bankruptcy and how to move forward with your life. If you require assistance, contact our team in Vancouver and Surrey to start your debt relief journey.
Financial bankruptcy is a legal process that offers individuals and businesses financial relief when they cannot repay their debts. While it provides a fresh start and a chance at new financial independence, the emotional stress can be substantial.
The stigma, shame, and fear associated with bankruptcy can lead to feelings of failure, anxiety, depression, and low self-esteem.
Accepting Your Emotions
Acknowledge and accept your emotions during this challenging time. Understand that it is normal to feel a range of emotions, including sadness, anger, and frustration.
Give yourself permission to grieve your financial losses and allow yourself time to heal. Bankruptcies are one of the hardest things a person can go through. However, they also represent a new start.
Find healthy ways to cope with stress. Engage in activities that bring you joy and help you relax. This could mean exercise, meditation, art, or spending time in nature.
Avoid turning to unhealthy coping mechanisms, such as excessive drinking or overeating, as they can further exacerbate emotional distress.
Seek Professional Help and Support
Don’t hesitate to seek professional help from a therapist or counsellor. They can provide a safe space for you to express your feelings and offer guidance on coping strategies.
Talking about your financial situation in a controlled environment can help you gain some perspective and make better decisions going forward.
You should also consider reaching out to bankruptcy support groups and community organizations. There are plenty of organizations to provide valuable resources and a sense of community.
Building a Support Network
Don’t suffer alone. Share your feelings and experiences. Your loved ones can offer empathy, understanding, and help.
It’s very likely that someone you know has gone through this experience. Talk to them for advice and support. Having a strong support system gives you a sense of belonging and helps with feelings of isolation.
Creating a Financial Plan
Take control of your financial situation today. Set realistic goals and create a comprehensive financial plan. This allows you to manage your finances effectively. Set achievable milestones and track your progress to stay motivated.
Combined with a great self-care plan, good financial management is the key to financial independence and better mental health.
At Crowe MacKay & Company, we have over 60 years of experience and offer free initial consultations. If you have any questions regarding the information above, contact our office today and start your debt relief journey.
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This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual needs. This publication is not a substitute for obtaining personalized advice.