Explaining Bankruptcy to Your Kids

Young children need stability and consistency. But when a family faces financial hardship, it can be difficult to continue providing them with a lifestyle to which they’re accustomed. After you’ve made the decision to file for bankruptcy, it’s time to consider whether to tell your children about the process. Preschoolers don’t need to know about bankruptcy; it may only confuse and frighten them. Similarly, elementary-aged children might not need to be told exactly what bankruptcy is. Instead, you might tell them that the family needs to be more careful about spending for a while. Try not to let children this young see how stressed out you are about going through bankruptcy.

If you have tweens or teens, it’s likely that they have already sensed the financial struggles of the family. You might explain to them that you have decided to file for bankruptcy to eliminate your debts and get a fresh financial start. Kids this age may even feel empowered by helping out the family a little; you could ask your kids to research budget-friendly recipes, for example.

Cutler & Associates, Ltd. is a bankruptcy law firm serving Schaumburg and the greater Chicago area. Our bankruptcy lawyers will walk you through each step of the process.