Talking to your child about filing for bankruptcy might not have been a discussion you thought you would ever have. You may have wanted to teach them about bankruptcy as a lesson in financial responsibility. But things happen in life. And now, you need to inform that you are filing for bankruptcy.
How you handle the discussion is crucial. You don’t want to avoid the conversation, making your child wonder why they need to move schools or skip vacations. Nonetheless, you don’t need to share all the specifics, as this can overwhelm them.
Here is how to approach the discussion:
Be honest
It’s vital to be honest when discussing bankruptcy with your child. Tell them about what might change and avoid giving details you might not be sure about at this time. Further, ensure you use age-appropriate language. How one parent discusses bankruptcy with a teenager differs from how another handles the subject with a 5-year-old.
If your child is younger, keep it simple and positive. You can tell them that you can’t afford to make some payments, and so the bank has to make choices that will affect the family. Then, emphasize that you are doing everything to improve the situation. It can help to use examples from your daily life to help them understand.
If you have a teenager, you can be more direct. For instance, you can explain what led to the debts, such as medical expenses, and reassure them that you are working to restore the family’s financial stability.
Using simple, age-appropriate language, reassuring your child and avoiding placing blame on anyone are crucial when telling your child you are declaring bankruptcy. You should also obtain more information about the process to make informed decisions to protect your family’s future.