When you file for bankruptcy it will affect your family in certain ways. If you have kids they may even feel the affects of your bankruptcy. Outside family members like your parents, cousins, brothers and sisters, they probably won’t be affected much if at all.
The Kids
If you have kids, depending on their ages it will affect them differently. They may be young enough to not even realize what’s going on. But if they are teenagers they will notice the stress that mom and dad are going through. It may affect how they do in school; they may feel your stress and not study as well. Or it may just make them moody, with not as much money to spend you may need to cut back on their allowance. If they aren’t getting as much money as they once did they will most likely complain quite a bit. Or if you’re lucky enough they will understand what you’re going through and try to help you out as much as possible.
Spouse
The bankruptcy will be tough on both you and your spouse. You will have to cut back on those extra expenditures. Of course if you’ve been having money problems for a while you may have already done this. Depending on which type of bankruptcy you decide on, you will have to set up a payment plan one that you will be able to pay. If you’re filing a chapter 7 your bills or most of them should be discharged but you may have to adjust back to only having one vehicle and possibly take the chance if you may lose your house if you own it. If you’re renting you should be fine but a vehicle may still be taken away unless you have claimed it exempt.
Others
If your not very old when you file for bankruptcy your parents may be affected by the filing. You may borrow money from them or other relatives to help you file. Than you will owe them money and if they really didn’t have the money to loan you it can leave them short and struggling. The same with any other relatives you may want to borrow from. Or there may be hard feelings if they refuse to loan you money when you know they have it. Borrowing from relatives and friends is not an easy process; at times it may drive friends and family apart.
Finally
If at all possible you should try to avoid borrowing money especially if you may not have any way available to pay it back to the people you have borrowed from. People are only patient for so long before they begin getting upset that you haven’t paid them back. It really takes a special person to be able to borrow money from and then not get angry. So make sure that if you absolutely have to borrow that you ask someone who has enough that they won’t worry about being paid back for a bit, just in case your not able too.