No man or woman wants to tell family members they are filing for bankruptcy. However, this step may become necessary at some point. How can the individual break this news and do so in a way that others feel comfortable with the process? The following are five tips to help make this announcement easier.
Work Together
When discussing the bankruptcy with family members, ask for their help. A better financial future is possible if the person filing bankruptcy has a plan in place to ensure a similar situation doesn’t arise. Although these types of circumstances cannot always be avoided, preventative steps may be taken to reduce the risk. Bring the family together to create a budget, look for ways to cut expenses and more. Bankruptcy attorneys may be able to offer other suggestions a person should take following the filing of the bankruptcy suit so don’t hesitate to ask.
Be Honest
Don’t lie when discussing your bankruptcy with family members. Explain the financial situation without placing blame on anyone. Remain neutral and let others know that this is the only option available at this time due to finances and be prepared to share how it will affect the family as a whole. This is especially important for children who may worry they will be forced to move, won’t have enough food to eat, or things of that nature. When they know what to expect, the process will be easier for them. Don’t assume they aren’t aware of what is going on either. Children pick up things adults say, so they need to have a basic understanding of what is going on and why.
Talk About Forgiveness
Men and women may get in over their heads financially. In the past, people were thrown into debtor’s prison when they couldn’t meet their obligations. This is no longer the case. The United States legal system believes in forgiveness when a debtor is unable to make payments as agreed. Explain this to family members and discuss how others should be willing to forgive as well because they may find themselves in a similar situation in the future.
Express Confidence
A person needs to be confident bankruptcy is the best option for their situation when discussing the suit with family members. If the debtor isn’t confident, others will pick up on this and wonder if the right choice has been made. Trust in your decision, knowing that you have explored the options and this is the one needed to provide the desired relief. When you do so, others will see this and feel more comfortable with the decision as well.
Focus on the Benefits
Be sure to center the discussion around the benefits of filing for bankruptcy. Try not to dwell on the drawbacks. Point out the taking this step will provide relief from the debt that is weighing the family down and will open a whole host of possibilities for the family in the future. If family members can see that the bankruptcy will actually be a good thing, in the long run, they will be more comfortable with this step being taken.
Share information with family members. Although discussing your personal financial situation can be uncomfortable, now is a time when you need to do so. Honesty allows others to judge the situation accurately, which is of great importance when it comes to a step such as this. Keep the communication lines open as well. When you do so, there are fewer misunderstandings and everyone can be on the same page. You’ll have more peace of mind when this is the case.