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Bankruptcies affect psychological well-being over time and in ways that we often never imagined.

Debt has long been an issue for many Americans, but the unparalleled trials of the past three years have spread misery to tens of millions more. The COVID-19 pandemic and its aftermath created massive upheaval in one’s lives: financial security, jobs, and health, among other areas.

More recently, soaring inflation, spiraling gas prices, and even basic commodities shortages have piled woe upon crisis upon uncertainty. And it is more than just the lack of money causing problems. A need for money led to a massive increase in stress, denial, anxiety, anger, and depression. The emotional shear of dealing with debt can be almost as damaging as getting your car repossessed, seeing your credit score plunge to where you will struggle to get another loan, or having your electricity cut off.

As individuals, they work to balance their finances and take notice of how they feel physically and mentally. Feelings of being overwhelmed or helpless can profoundly impact your mental health over time. Overcoming financial stress is a critical step in getting out of debt.

Moreover, overwhelming debt can result in stress and depression and has been linked to increased suicide rates. Money issues have also been linked to relationship instability, so one’s sense of physical and emotional security can be at risk when debt is constantly present in one’s life. The following are ways financial health can affect a person’s mental health.

Creates additional stress. Stress, especially chronic stress that has become part of your life for years, has a potent effect on your mind and body. Stress gives more wear and tear to your cardiovascular system. Constant pressure makes it easier to develop mental health problems and can affect the parts of your brain associated with Alzheimer’s disease.

Affects relationships. Families suffering from debt, whether student loan debt or personal debt, cannot put as much money into retirement as they would like and experience a delay in traditional milestones like starting a family and buying a home.

Developing behavioral symptoms. Financial stress can lead to an adverse change in behavioral symptoms such as changes in appetite, procrastination, and nervous behaviors.

Increases poor spending habits. When someone is experiencing mental health issues, they may resort to overspending to relieve feelings of depression and anxiety temporarily. Compulsive overspending can lead to guilt, depression, overspending, and ultimately, more debt.

Increases usage of drugs and alcohol. People experiencing financial debt stress may turn to antidepressants or alcohol to help deal with their anxiety. This can lead to addiction and even increased debt due to the costs associated with substance abuse.

However, despite all these problems, the Law Offices of Ronald Stadtmueller offers a Chapter 7 bankruptcy solution in San Diego. Sometimes situations beyond your control can profoundly impact your earning potential and lead to overwhelming debt. If you cannot pay your bills, consider filing for bankruptcy. Designed to give debtors a fresh start, Chapter 7 bankruptcy gives you and your spouse relief from debt by liquidating your assets. 

With over 30 years of experience, the Law Offices of Ronald E. Stadtmueller can help you file for Chapter 7 quickly and efficiently. Once you have filed for bankruptcy, creditors must immediately stop collection efforts, including harassing letters and phone calls. 

Means Test for Qualifying Debtors

To qualify for Chapter 7 bankruptcy relief, one must satisfy the court’s means test, which calculates the debtor’s income and expenses compared to the median income in California. If you are not eligible for Chapter 7 bankruptcy, Chapter 13 may be available. Law Offices of Ronald E. Stadtmueller can help you determine whether you qualify for Chapter 7 bankruptcy and if it is your best solution for dealing with your debts.

Final Thoughts

Once someone struggles with their mental health, it enters all aspects of their life and can become a vicious cycle. According to the studies, depression affects job performance and productivity, engagement with one’s work, communication with coworkers, physical capability, and daily functioning. Once a person is incapable of focusing or completing their work, they cannot bring in income, thus fueling the cycle of debt and mental health. It is a great relief knowing that there is a light of hope somewhere at the end of the tunnel. Contact The Law Offices of Ronald E. Stadtmueller today for a FREE one-hour consultation. What are you waiting for?

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