The effects of filing for bankruptcy can be devastating. In order for the debtor to rebuild his or her financial life, the debtor will have to be disciplined financially.  Most of all, the debtor will have to deal with the emotions of bankruptcy.

Sometimes the most devastating effects of bankruptcy are the emotional ones.  It is easy to feel down after filing.  Many debtors feel as though they have failed financially and that there is little hope of regaining the financial security and stability they once have.

Other debtors feel a sense of embarrassment that they were unable to pay debts down, and had to resort to using the court system for assistance.  Further, if the debtor’s financial difficulties are tied to an already difficult situation like the loss of a job or an illness, there will be even more negative emotions when the debtor decides to file for bankruptcy to get a fresh start. Moreover, money and credit is necessary to obtain certain basic possessions in life.

The truth is, there should be no embarrassment in filing for bankruptcy.  Bankruptcy is a process designed to help people who are going through financial hardship.  The process is there to be used.  Further, unless you are a celebrity or the CEO of a publicly-traded company, no one will learn about your bankruptcy unless you tell them or unless they randomly decide to sift through the large amount of court filings and stumble upon yours.

Even if the debtor comes to understand the truth about bankruptcy, there will probably still be some down feelings.  Proactively taking control of finances and working to rebuild for the future can help debtors work through these feelings by focusing on preventing future financial disrepair.

After filing for bankruptcy, the debtor should make a budget and stick to it.  Be realistic and consider your income and reasonable and necessary expenses.  Receive credit, but make sure you pay all bills on time.  This will help rebuild your credit score, reflect favorably on credit reports and serve to counteract the bankruptcy filing that will also appear.