Don’t Let Financial Problems Dominate Your Life

Explaining your bankruptcy case to your kids 

On Behalf of | Jan 31, 2025 | Bankruptcy |

Filing for bankruptcy is a complex undertaking. It may – very understandably – be difficult for you to fully wrap your head around a need to seek debt relief in this way. And if you have children, you may also be concerned about how to explain it to them.

While you don’t need to share every detail of your situation, it’s important to talk to your kids in a way they can understand and to avoid attempting to hide your circumstances from them completely. Children are observant, and if they notice changes like moving to a new home, cutting back on expenses or stress in the household, they may have questions. Being honest, reassuring and age-appropriate in your explanations can help them feel more secure during this transition.

Keep it simple

Younger children don’t need complex financial explanations. They just need to know that you are handling things and that they are safe. You might say, “We are making some changes to help our family have a better future. We might spend less for a while, but we will always take care of you.”

Teenagers, on the other hand, may already understand money and debt. They may worry about how bankruptcy will affect them, such as whether they can still participate in sports, go to college or keep their favorite belongings. For older kids, you can explain that bankruptcy is a way to reorganize debts and start fresh, while also addressing their specific concerns.

No matter their age, children may worry that bankruptcy means losing everything. It’s important to reassure them that they will still have a home, food and other necessities. If there will be major changes, such as moving to a smaller home or cutting back on activities, explain them in a positive way. Let them know that these changes are temporary and will help the family in the long run.

Archives