Part 3: How to Recover from Bankruptcy Trauma

Posted on June 8th, 2024
A woman holding her head in her hands with a computer in front of her and a calculator

Bankruptcy trauma can have long-lasting emotional and physical impacts if it is not dealt with in a professional manner. Going through bankruptcy isn’t just about working out the crisis of identity but also the shame, stigma, and uncertainty of the process.

Financial difficulties also place a lot of strain on relationships. Whether with family, partners, or friends, if left unchecked, this strain can break down relationships and leave you feeling isolated and lacking emotional support.

Here’s how to begin your journey to healing from bankruptcy.

Get Professional Support

The first thing you should do to begin your healing journey is to seek out a professional who can help you on your path. While many people don’t consider bankruptcy as traumatic as something like losing a loved one or an accident, it is still a form of trauma and can cause a myriad of issues, such as developing PTSD, if it’s not dealt with.

At Naked Recovery, we support clients struggling with bankruptcy trauma through a specialized 4-month recovery coaching program. We give you the tools and strategies you need to move forward rather than focusing on the trauma itself.

Remember, Your Self Worth is Not Reflected by Your Net Worth

One of the primary emotions associated with bankruptcy trauma is shame. This comes from a warped societal opinion that people who have money are somehow more than those who don’t. The truth of the matter is that your net worth has absolutely no bearing on who you are as a person.

Remember that you have people who love you no matter how much money you have in your bank account. Practicing gratitude or doing daily affirmations is a good way to get started. Of course, it’s much easier said than done, but by taking small daily steps towards gratitude, your mindset will start to change from negative to positive, and this will help you shed those feelings of shame.

Set Goals

The Naked Bankruptcy program is a forward-facing program, so unlike traditional therapy, you won’t be going over the trauma itself again and again. Instead, we will look at creating a solid foundation and setting some goals.

Goals are an excellent way to measure your progress, as they give you a starting position, an ending position, and a mission to complete. You have something to work towards, and it will allow you to look back at the end of the program and assess how far you’ve come. Goals could be anything from making healthy dinners at home three times a week to repairing a relationship with someone whom you’ve fallen out with through the bankruptcy process.

Pinpoint and Project Manage Triggers

As with any trauma, bankruptcy trauma is linked with certain triggers that continue to impact your daily life. First, you must pinpoint the triggers. Being able to identify your triggers is a great way to learn how to manage them while you are still healing.

Once you have identified your triggers, we can work on equipping you with strategies and tools to deal with these triggers as they come up in your day-to-day life and how to deal with them proactively. This way, you will learn how to support yourself and overcome your trauma symptoms in a matter of time.

Create a Financial Plan

There is a large element of financial trauma that comes with the bankruptcy process, and this often comes down to the financial instability that has been caused. Not knowing where your next paycheck is coming from, losing your house, car, and other assets, having to look for a new job, and so much more can have a profound impact on mental and physical well-being.

Set realistic financial goals as early as possible. You’ll need to start budgeting, so it’s good to put a budgeting framework in place that takes your income and expenses into account. This will help you stop sliding back into debt and better understand how much you can save going forward.

Release Your Fears and Embrace Your Healing Journey

Financial fear and bankruptcy trauma can be completely crippling and almost always involve emotions that are wrapped up in a lack of self-worth, anxiety, and fear around money. It’s important that you work through these emotions in order to release the trauma, fear, and anxiety that is holding you back.

Bankruptcy isn’t the end of the road by any stretch; in fact, it’s an excellent opportunity to start anew with a fresh slate and a support structure in place. Working with the trauma specialists at Naked Recovery will address the mind, body, health, and wealth connection to create a holistic and healthy path to healing from your trauma.

Heal From Bankruptcy Trauma With Naked Recovery

You don’t need to stay stuck in a cycle of shame, fear, and anxiety after bankruptcy. Naked Recovery has the ideal program to get you back on your feet and settle your emotional insecurities. We will work with you every step of the way and offer you the stability and grounding that you need after going through something traumatic.

Contact us to learn more about the program or to chat with one of our trauma experts today.

Leave a Reply

Your email address will not be published. Required fields are marked *

← Back to Blog