How to Talk to Your Kids About Bankruptcy

Bankruptcy is a serious and burdensome thing that can be very hard to explain to your kids. Since children are curious by nature, they will eventually, in one way or another, find out about the financial difficulties you are facing. That’s why we suggest you sit with them and patiently explain everything as carefully as possible. Now, we know you are probably unsure how to approach that topic. Mentioning financial problems may upset them, but if you know how to talk to your kids about bankruptcy correctly, everything will be fine. We are here to help you with that.

Petition to file for bankruptcy


Teach your children some important lessons that will be useful later in life.

Teach your children important life lessons

These difficult times may be the opportunity to teach your children some important lessons that will be useful later in life, like explaining the benefits of filing for bankruptcy. You can acquaint your children with the value of money, frugality, and how debt can grow over time. Talk about financial habits using terms and examples your children can comprehend. Planning a basic family budget and the necessity of paying off debt are concepts that most children can grasp. Make it clear that you have the plan to resolve this problem and that you need their cooperation and support in this situation. Make sure to let them know what you expect from them – such as saving on the electric bill and being more humble about things they need and want. This way, they’ll gain more responsibility and will grow more mature. Let their activities contribute to solving the family crisis.

The negative impact this can have on children

Children often have a vivid imagination, and if you fail to adequately explain the problems you as a family face, your children may misinterpret the situation. That is why knowing how to talk to your kids about bankruptcy is essential. It often happens that they blame themselves or you for the financial issues. Try to help them reduce the emotional stress they feel and be supportive. If there are indeed mistakes you have made, talk about them openly and give your children a chance to learn something from them.

Prepare the children for a move

If you have decided to move to a new house due to finding a new job or cutting costs, you must prepare the children for the move. Tell your kids that you plan to move and make them part of the process. Let them help you choose a new house or neighborhood you will live in together. Be sure to take into account their wishes and needs. Being there for your kids in a more comforting way will help them adjust better. The most important thing is to alleviate the stress of the move in every possible way.
If you are moving in Miami and hiring residential movers, carefully choose professionals to help you relocate to your new home. Hiring an affordable team can help you not only to protect your property but also reduce moving costs.

Father talking to his son


Talk to your kids about bankruptcy – what it means for your family and how life will change for them.

Conversations can reduce anxiety

Good communication and telling them everything they need to know about your current situation is the correct way of talking to your kids about bankruptcy. We know it is a heavy situation in question, but try not to make it sound so devastating, especially if your kids are young. Be serious and talk to them like you would speak to an adult, so they feel important and responsible. Therefore, be rational with them. Describe what bankruptcy means for your family and how life will change for them. Explain that there are thousands of families in a similar situation and that there are ways to solve such financial problems. Hiring bankruptcy lawyers can further reassure them that you are not alone in this and things will end well for you and your family.

Man holding money


If you have chosen to tell your kids that you’ve decided to declare bankruptcy keep things simple

How to talk to your kids about bankruptcy: Be honest

If you have chosen to tell your kids that you’ve decided to declare bankruptcy keep things simple. The best way is to say that Mom and Dad have a problem and that you are working on fixing that problem together. How detailed you are will depend on the age of the children.

Preschool kids

For younger children, it is enough to communicate only those things that will affect them and their daily routine. You don’t want to burden them with concepts they cannot grasp. But children at that age can tell that there is a problem by observing their parents and their reactions. So try to be relaxed as much as possible.

Elementary school

You can give children a little more detail at this age. Tell them about the results you expect, that they will get rid of your debts, for example. Professionals from Miami Movers for Less recommend that if you are planning a move to reduce costs, try to find a new home near the one you currently live in. This way, your child will continue to attend the same school and hang out with the same friends.


The coming changes will have the most significant impact on children of this age. Their help in overcoming this situation can be valuable to you. Not only can they help you with younger children in the family, but they can also find after-school or summer jobs if they want to help.

Starting over

No matter how hard it gets – you can always start over. Just because you have financial problems at the moment doesn’t mean you have no future – life after bankruptcy certainly exists. What is important is the way you deal with these troublesome situations. That is one of the most important things you need to explain to your kids.

Final words

As we said, bankruptcy is not easy to deal with – neither for adults nor children. The way you talk to your kids about bankruptcy can make them feel calmer about the situation you’re dealing with. So, patiently communicate with them, try to understand their feeling, and they will undoubtedly understand yours.

The Law Firm of Freire & Gonzalez, P.A., is ready to guide you through bankruptcy and help you regain control of your finances and your life. If you have any questions, please contact us at 305-826-1774 and our locations:

Bankruptcy Lawyers Miami, FL

Bankruptcy Lawyers Fort Myers, FL

Bankruptcy Lawyers Cincinnati, OH

Bankruptcy Lawyers Northern Kentucky

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