While a bankruptcy lawyer can explain the details of bankruptcy to you, many people are often anxious about explaining the subject to their children. Children may lack the context to understand the full effects of bankruptcy, but you can still explain your financial situation to them and alleviate any fears.
When explaining bankruptcy to your children, follow the guidelines below:
1. Explain The Financial Changes.
There are many emotional effects of bankruptcy, since people are often concerned with the risk of losing their home, car, or other property. The immediate effects of bankruptcy will depend on which chapter you file for, but try to explain the most obvious financial changes to your children in order to prepare them.
2. Use Understandable Terms.
Many adults often have difficulty understanding the bankruptcy process without the help of a bankruptcy lawyer. Without getting into complicated matters such as equity or interest, explain basic financial obligations such as assets, debts, and borrowed money to your child.
3. Avoid Placing Blame.
While the decision to file for bankruptcy is usually the result of several different financial obligations and circumstances, it is not uncommon for a child’s perspective to be skewed in these matters. Kids may easily internalize the burden and consider themselves to be the source of your financial difficulties. Be sure to address this issue and stress that they are not to blame for financial matters. Your bankruptcy lawyer can help you break down the situation so your children can begin to understand the many factors that contribute to this decision.
Here at Cutler & Associates, Ltd., we are dedicated to providing compassionate and reliable legal assistance. For more than 20 years, our team of highly qualified bankruptcy lawyers has been helping Chicagoland residents reclaim their financial independence.