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3 Reasons Why Bankruptcies May Affect Mental Health

One of the most widespread results of filing bankruptcy appears to be a profound impact on mental wellbeing. An incredible 75% of people who file report they became depressed during or after the process. This isn’t an encouraging picture, especially when you consider that many who filed were probably initially depressed by their financial woes before filing.

Bankruptcy is designed to be a form of debt relief. I’d like to place the emphasis in that sentence on the word, “relief”. The purpose is to ease financial burdens and allow an individual to start with a clean slate for building credit and a solid future. So, why would the result be depression? Let me offer a couple of theories:

One possible cause is the opinion that filing bankruptcy indicates some sort of personal failure. Many people can’t get past the feeling of responsibility, no matter what the circumstances. “I should have been better prepared.” “I should have worked harder or taken a second job.” I should have saved more.” There are countless ways to blame yourself. In truth, life happens and most people end up in a financial crisis because of events they had little or no control over.

Another possible and very unfortunate reason may be that the person who filed didn’t realize the relief he or she had hoped for. This tends to happen in cases where an attorney ignores certain steps in the process, including:

• Thoroughly examining all debt relief options available to the client
• Helping ensure that all debts, assets and income are correctly reported
• Ensuring that the client completely understands the entire process
• Helping the client devise a recovery strategy after filing

Each of these steps is crucial to the success of any financial recovery plan, including bankruptcy. An attorney that’s only concerned with the preparation and filing of the papers is neglecting the best interest of his or her client.

In fairness to attorneys in general, it’s important to note here that a lawyer can only advise the client, not compel the client to follow that advice. Keep in mind the adage that “You can lead a horse to water, but you can’t make it drink.”
Finally, this situation sometimes occurs when individuals handle their own proceedings, without an attorney. This option is available for individuals, and is referred to as “pro se”. You may also hire an attorney on a purely advisory basis and file your own paperwork, etc. While these methods are acceptable, you must also accept the risk. Bankruptcy proceedings can become complex and a recovery plan is even more complicated.

Before your finances affect your wellbeing, contact accomplished SAN DIEGO BANKRUPTCY LAWYER Jeff Larkin. To seek advice from SAN MARCOS BANKRUPTCY ATTORNEY Jeffrey Larkin, call 877.25.NEW.HOPE for a free consultation today or visit his BANKRUPTCY LAWYER IN CARLSBAD CA Google+ Local page.

For more details, Please visit our website: larkinfirm.com

By Jeffrey Larkin

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