Facing the prospect of bankruptcy gives you a very precarious feeling. However, the whole system was set up to protect and guide people just like you. Avoid looking at the negatives, and consider the many benefits of bankruptcy that can really change your life.
1. An End To The Harassment
After you have successfully filed for bankruptcy, no creditor can call you in an attempt to collect on what you owe them. They can’t repossess any item or take you to court over the bill. All at once, the constant harassment is over. For most consumers, this is the beginning of the healing process. It’s a time to be able to finally collect your thoughts, assess the situation and think about moving on.
2. Keeping The Roof Over Your Head
One of the major benefits for filing for bankruptcy that homeowners seek is being able to retain possession of their home. Filing chapter 13 will give you a chance to reorganize your finances, such as the opportunity to renegotiate the terms of your mortgage with the bank. You will also have the chance to play catch up with payments, meaning you will see a light at the end of the tunnel. If you own a home and are considering bankruptcy, be sure to evaluate the pros and cons of both chapters 13 and 7 so that you can make the best possible move.
3. Slamming The Breaks On Debt
When you file for bankruptcy under chapter 7, the court will order all unsecured debt to be discharged. This means you’re no longer responsible for any of it. From credit card to medical bills, it’s all gone. From that point, you can analyze your financial standing and start directing your income to other things. While the rules of 13 demand repayment, the court will set up your payments so that you can handle them without drowning in the debt. An appointed counselor will help you figure out how to repay what you owe in reasonable terms. So either way, the benefits of bankruptcy are enormous to your ability to get debt under control or to eliminate it altogether.
4. Relief From Overwhelming Stress
Psychologists suggest that financial stress is one of the biggest problems facing consumers today. People simply aren’t making enough money to keep their heads above water. This can lead to spousal disputes and even abuse, not to mention making life very hard on the children of the household. Financial burdens tend to make people feel inadequate when they’ve got a family to support. Gradually that burden becomes too much to bear and lives are subsequently ruined. While filing for bankruptcy isn’t going to solve all of your problems, it will certainly remove some of the most significant sources of stress in your life.
5. A New Tomorrow
When the dust settles on the whirlwind of court proceedings, document signings and endless meetings with credit counselors, you’re looking at a clean slate. No matter which type of filing is best for your situation, they both provide you with a brand new start in life. With chapter 7 your whole financial life starts over, beginning on your last day in court. With the alternative chapter 13, debt is reorganized to a manageable level. Your outlook begins to brighten as you realize you’ve now cleared the worst of the storm and can move on. Use this opportunity to change the habits that got you into financial trouble in the first place, and to build a stronger foundation for living indefinitely.