Bankruptcy. There, we said it. It’s not an easy word to let out. Often, we have a stigma against bankruptcy procedures. Whether we decry it as a ‘tool of the rich’ to avoid paying debts or simply as the ‘cowards way out’ there is a reason that we have this option available to us. Throughout life there are times when circumstances outside of our control or conception affect our ability to be an upstanding citizen and make payments on our debts and bills. That’s OK. That’s right – it’s OK. Don’t abuse this blessing in disguise and you’ll find yourself breathing easier.
Bankruptcy Helps with Future Credit
This one seems like a real stretch – by filing bankruptcy you help your future-self gain access to better financing opportunities. While there certainly will be a hit to your credit, after successfully completing bankruptcy and waiting out the mandatory time periods you will be freer and better off than if you had simply ran late on all your bills and payments (or defaulted).
Consolidating Your Necessities
As you begin to shed all the sorts of debts and obligations that overextended yourself once the ‘good times’ ended, you’ll find yourself able to focus only on what matters and what you truly need. This is important – too often we find ourselves relying on certain physical comforts that we cannot imagine ourselves living without even if they are preventing us from succeeding financially. Bankruptcy will protect your most vital assets from seizure while forgiving some of your more extraneous debts.
Peace of Mind
By putting a stay on all your debts and asset forfeiture you can finally begin to put your life back together. The idea that you will finally be able to breathe again and not worry about the constant barrage of letters and phone calls about your outstanding debts or physical assets (cars, house, etc) being seized is an unspoken blessing. You’ll be able to plan out your return to financial solvency without the anxiety-inducing rat race of collections agents, debt management ‘specialists’, or irate creditors.
While there are more specific benefits to bankruptcy in each individuals case, these are just some of the more general benefits people can see from filing bankruptcy. However, before considering such an important and far-reaching option it is best that you speak with a trained, professional such as an attorney to best determine what options are best for you.