The stress of financial problems can put a strain on you both physically and emotionally. The longer you are under high levels of stress, the more pronounced the problems can be.
Many people wrongly perceive filing for bankruptcy as an irredeemable failure. However, it is actually a way that you can start over financially and relieve the stress of your situation, thus helping to improve your mental state. The National Library of Medicine describes some specific mental health conditions associated with financial problems.
Anxiety is a persistent state of fear or worry. Unemployment and uncertainty about your job security are financial problems that can cause your anxiety levels to increase. Financial stress may increase your chances of a diagnosis with an anxiety disorder, which occurs when the feelings of worry or fear are more intense or excessive.
Depression causes persistent feelings of apathy and intense sadness. It can have physical effects as well as emotional ones. For example, depression can cause headaches, back pain, fatigue and difficulty sleeping. Financial factors that can contribute to depression include housing insecurity (e.g., the threat of foreclosure), reduction in your income and loss of your job.
Suicidal ideation and self-harm
Self-harm involves deliberately injuring yourself in ways that are not fatal, such as cutting yourself. Suicidal ideation is thinking about killing yourself. Housing and job insecurity are among the financial stressors that increase the risk of self-harm. Personal economic distress increases the risk that you may think about killing yourself or attempt to do so.
Though not a substitute for seeking help when experiencing psychological symptoms, filing for bankruptcy may help to improve your mental health by relieving the stress that is contributing to your issues.