Children, depending on their age may be kept in the dark about the happenings of the parents' financial situation. If they are a little older then they may not fuller understand what is actually transpiring. They may see the red flags and know that things are changing but not know why or what to do about it. For example, they may no longer be able to participate in their extracurricular sports and activities because of the cost. Birthday celebrations and holidays may seem a lot less festive. They may not be able to have all of the latest technological gadgets that their friends' parents have bought them, the same ones that their parents used to buy for them.
All of these things are examples of what children may miss out on when their parents decide to file for bankruptcy. So while you, as parents, may be trying to keep them in the dark and shield them from the truth, you may not be giving your little one as much credit as he or she deserves. Children are usually very observant. It may not always be the material things that they miss out on. Even if you are able to shield them from the truth in the sense that you sacrifice your material belongings so that they can still enjoy the lifestyle that they have grown accustomed to, they may notice other things like mommy and daddy always seem to look sadder, defeated, frustrated, or angry. You will want to have an age-appropriate conversation with your children to explain the bankruptcy. They may not need to know everything but, depending on their age, they may deserve to know something.
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