Why declaring bankruptcy could be good for your mental health

On Behalf of | Dec 18, 2020 | Chapter 7

For many years, bankruptcy has had a social stigma placed on it. Many people have been afraid to resort to it because of what others might say. In the same way, there has long been a stigma about mental health issues, especially among men. Many people do not admit they feel low or suffer from depression or anxiety because they fear how others might react. It turns out this is not the only way that bankruptcy and mental health are linked.

Debt has a negative impact on mental health

Professor Patricia Drentea of the University of Alabama Birmingham looked into the effects of debt on depression, anger and anxiety. She found debts such as student loans could harm people’s mental health, and “Credit card debt, or unsecured debt that isn’t associated with major things in life that you need, is even more likely to be associated with negative mental health.”

Debt and mental health issues are a vicious circle

If you suffer depression or anxiety due to your debts, it could affect your ability to work. If you cannot work, you are even less likely to pay off your debts, which can exacerbate your mental health issues. It is a vicious circle. Many people find themselves plummeting into a downward spiral of hopelessness due to debts they cannot pay.

Bankruptcy offers hope

If you cannot see a way out of your circumstances, you are unlikely to get better mentally. You may fail to see that there are options available. Bankruptcy is one of those options. Contacting a bankruptcy attorney could be the first step on the road to improving your financial and mental wellbeing.