The idea of bankruptcy can create a significant amount of stress and uncertainty. Many people experience feels of stress, depression, anxiety, and failure. In addition, there is a social stigma that bankruptcy is a shameful process.
When dealing with bankruptcy, the best way to alleviate that stress is to change your way of thinking. The truth is that bankruptcy is a tool that protects debtors from malicious creditors and overbearing debts, especially after a financial shock. Here are some mindsets you must have when struggling with bankruptcy.
1. Remember You Are Not Alone
One of the most essential things to remember during bankruptcy is that you’re not alone. Filing for bankruptcy is pretty common, although most people are reluctant to speak about it. Not only are there many people going through a similar situation, but there are people who can be there for you and provide valuable support through the process. Friends, family members, and a Licensed Insolvency Trustee can all offer reliable advice on the situation.
The biggest mistake people make when dealing with a bankruptcy is to bottle negative feelings up and keep those feelings to themselves. While seeking assistance from trusted individuals may seem uncomfortable at first, those trusted people may provide valuable support and advice than you could have possibly imagined. More importantly, do not forget to get enough sleep and practice healthy habits, such as yoga and dieting. All of this will lead to improved physical and mental health.
2. Think Growth, Not Fixed
People tend to act on things they believe they can do. The main reason people feel stuck in their ability to overcome obstacles is due to unrealistic expectations. In terms of dealing with bankruptcy, that could be evident in an unreasonable goal like wanting to see a $10,000 debt vanish in a week.
Fixed mindsets exist when an individual looks at the end goal rather than the little steps along the way. To enter the growth mindset, think of bankruptcy as something that helps to build a new financial future. Here are some ways of developing a growth mindset when dealing with bankruptcy.
- Read success stories.
- There are countless stories of people who have been through bankruptcy successfully. Use their stories as inspiration.
- Identify digestible actions.
- Success is a result of completing small actions repeatedly. The same case applies to bankruptcy. Identifying, small easy to perform actions can help you work towards the big picture.
- Look at all options.
- Bringing debts down requires a strategy. Consider negotiating an affordable debt repayment plan. In addition, determine what balances should be cleared first.
3. Decide Change is Permanent
Tell yourself repeatedly that you’re done with those old habits and it is time to start something new. There’s the need to actively convince the brain since it is naturally very resistant to changing established patterns. View bankruptcy as a chance to start over and get past the previous financial difficulties.
4. Remain Positive and Proactive
Staying positive about bankruptcy will help both with the anxiety and stress involved in the process. Rethinking the perception of bankruptcy will help you understand that while it is not an easy process, it is not as daunting or scary as you had first imagined.
The stress of bankruptcy can lead to significant damage to a person’s life. By developing the above four mindsets, you will certainly have an easier time when dealing with bankruptcy.