Talking to Your Children About Bankruptcy

Bankruptcy can make an enormous positive difference in your life if you’re struggling with debt problems. However, there are times when it can be a difficult subject to discuss, especially with your children. Every parent wants to be a good provider and keep their children away from stressful situations, but depending on their age, they might already understand that the family is facing a challenge. In these cases, compassionate honesty is usually the best policy. 

Speaking with sons and daughters about bankruptcy can help demystify the process and alleviate any anxiety they may feel due to the changes in the family’s circumstances. Some strategies that might help make the conversation easier include the following:

• Be age appropriate — Prior to school age, children likely are not aware of financial concepts, so it might be best to be sure that your fear or frustration does not affect the way you speak to them. Grade schoolers should understand the difference between things people want and what they need. You could explain that for some time, your household has to focus on needs. For older children or teenagers, a more detailed discussion may be appropriate. Emphasize you are working with a professional whose job is to get you through this challenging time successfully.  
• Get them involved — Empower your children by involving them in money-saving efforts. This not only helps relieve financial pressure but also teaches valuable life skills. Even at a young age, sons and daughters can be part of a family project to reduce unnecessary spending. 
• Focus on the future — Young people understand that tough circumstances occasionally arise, but that they can be overcome with time, determination and assistance. Reassure your children that, though there will be changes, these adjustments are part of a plan to improve the family’s long-term well-being.

Discussing bankruptcy with children may be uncomfortable, but open and honest conversations can foster a sense of teamwork and resilience. By using age-appropriate language, focusing on the positives, and involving them in practical solutions, you are equipping them with the emotional tools to handle family challenges in a positive manner. Thoughtfulness and sensitivity can help all of you tackle your financial issues and emerge as a more resilient family unit in your life after bankruptcy. 

Jeff Field & Associates advises Georgians on a wide range of issues relating to Chapter 7 and Chapter 13 bankruptcies. To make an appointment regarding your specific situation, please call 404-381-1278 or contact us online. We have locations in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.