Bankruptcy and Children

One thing that many people do not think about in the stress of filing for bankruptcy is the effect this process has on children. Kids can be very frightened and may even suffer psychological trauma when the adults around them are upset about finances. They may be forced to leave their family homes and may worry about whether the family will be able to stay together. This problem is compounded because many adults do not want to talk to their children about money matters, so the children are left to fear the worst and may even be afraid to bring the topic up with their parents. There is a better way to deal with children when it comes to bankruptcy, and that is to be honest with them within the limits of their understanding. If children understand that you are handling the situation and that they are going to be okay, you may be able to avoid some of the problems that could develop from the effects of financial pressure on your family.

Talk To Kids Honestly

It is not a good idea to talk to your kids about your salary and finances in a general sense, but when you are faced with bankruptcy, you may have to make an exception. Depending on your children’s age, they are bound to know that something is happening, but they may not understand the implications of all that is going on around them, particularly if you are going to let your house or your car go back to the creditors. It is advisable to explain to children in simple terms what is happening. If one or both parents have lost their jobs, for example, you might start out by telling the kids that because of your job loss you are going to have to do some rearranging. You could also talk to the kids about making economies themselves; for example, if they are used to buying their lunches at school, you might make a family affair of going grocery shopping for food that you can use to pack their lunches. The more positive you make the conversation, and the more “options” you give the children, the less likely they are to be frightened. Older children may want to contribute to the family finances. This is a very personal decision on the part of the family and should be discussed together. Remember that if your child works and has a regular income, you should discuss that with your attorney to be sure that you have made the proper declarations. The Oswalt Law Group is ready to help you with all of your bankruptcy issues, including handling the issues that arise with your family.