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How to tell your family you are filing for bankruptcy

On Behalf of | Nov 18, 2024 | Bankruptcy

Talking to your family about bankruptcy can be a difficult conversation. But it’s necessary. Support and understanding from loved ones when declaring bankruptcy are crucial. But how can you break such challenging news to them?

Here are three tips to help you:

Choose the right time

You need to choose the right time to inform your family you are filing for bankruptcy. It’s recommended to do so after determining bankruptcy is the best solution. 

It’s also essential to have this conversation when your loved ones are less likely to be distracted or in a hurry to go to other errands. They should be calm and focused on the discussion.

Be honest

Honesty is essential when telling your family you want to declare bankruptcy. Let them know how you got to this point without blaming anyone and why bankruptcy is the best option. You should also be honest about how your decision will affect them, perhaps your children may need to reduce their extracurricular activities, and so on.

While honesty is key during a bankruptcy conversation, you should consider their age. You don’t want to overwhelm your 10-year-old with information that can increase the emotional toll they may already be going through due to your news.

Be ready to address potential concerns

Your family will likely have questions regarding your decision. They may want to know how you will pay bills or if you will need to move to a smaller house. If you have a co-signed loan or are paying child support, your co-signer or co-parent may want to know if declaring bankruptcy will stop your obligations and so forth.

Thus, before having the conversation, write down potential concerns to be ready to provide answers.

It can be challenging to discuss bankruptcy with your family. The above-discussed tips and legal guidance can help you have a seamless discussion.