How Bankruptcy Debtors Can Guide Their Kids Through Financial Crisis

Going through financial troubles with kids is no picnic. But for bankruptcy debtors, it is especially important to work with your children to make sure that the entire family is on the same page when it comes to financial recovery.

Below are a few tips:

  1. Be honest with your kids about the bankruptcy filing.  Make sure that you tell them in age appropriate ways why you’re filing bankruptcy, how bankruptcy will help the family and what type of financial adjustments the family will need to make.
  2. Try to keep a routine during your bankruptcy case.  This is important for both Chapter 7 and Chapter 13 bankruptcy debtors. Once you make adjustments to your family budget try to stick with a routine. For example, if you take the family out for dinner once a week, try to continuing without disruption.
  3. Get a plan for housing and try to keep the housing situation stable during bankruptcy. Nothing impacts a kid’s sense of safety more than a secure place to live.  Bankruptcy debtors with children should make sure that they have solid plans for housing. If you plan to surrender your home in bankruptcy, make sure that you find appropriate housing as soon as possible and avoid bouncing from place to place if you have kids.
  4. Bankruptcy debtors with kids should try to keep their kids in the same school district so they don’t need to change schools in the middle of the year.
  5. If a bankruptcy debtor has been forced to change their kids’ school in the middle of the year they should make sure the child remains in contact with old friends.