Deciding to file for bankruptcy is never an easy decision.
When weighing the factors involved in making your choice, it’s important to consider that, while bankruptcy may present challenges, it can also offer many benefits that can improve your quality of life, both immediately and in the long run. Are you ready to learn more about how filing for bankruptcy can help to alleviate the stress, strain and trouble of burdensome debt?
Here are some of the ways that bankruptcy may benefit you.
1. Debt relief
This is the most common benefit associated with bankruptcy and for good reason – relief from crushing debt can make a huge impact on people’s lives. Depending on the type of bankruptcy filing you pursue, debt can be discharged or restructured to allow for an immediate break in the debt you’re responsible for paying. While bankruptcy will have an impact on your credit score, it will also help alleviate immediate debt problems and likely help free up income, ultimately helping provide greater financial security and moving you towards your future financial goals.
2. Improved Credit Score
A bankruptcy filing can stay on your credit report for 7-10 years. This will likely have an adverse impact on your credit rating, potentially making it more difficult to obtain new credit cards or loans. But with discharged debt, your debt-to-income ratio will likely drop – this has a positive effect on credit and is a significant factor in establishing credit ratings. Debt relief can also free up income that can be used to pay other bills, increasing your on-time payment score, which is another large percentage of how credit scores are established. With continued on-time payments on other non-discharged debt, like student loans, you can steadily increase your credit rating and secure a solid financial foundation.
3. Reduced anxiety
The impact of debt isn’t just financial – it can be emotional as well. Not having a plan for how to tackle debt or make payments on bills can create an incredible about of stress and put a strain on interpersonal relationships. Bankruptcy gives you a solution and a way forward. When debt reduction leads to stress reduction, it can greatly improve your life, your relationships, and help you make progress towards a positive future that includes not just better financial health, but better mental health as well.
3. Positive financial future
Bankruptcy can feel like a fresh start for many people. Removing the weight of credit card debt and the ability to use credit cards means that people have a much better handle on what it means to live within their means and prevent a future financial crisis. Most people who file for bankruptcy are required to take debt counseling classes, which can be a positive educational experience and help people restore their financial confidence. Having reduced debt and a solid budget can help people have much easier access to a stable, long-term financial future that can include re-building credit, buying property, investing, and saving for emergencies and retirement.
No matter your reasons for considering filing for debt relief, our office can help you handle the complicated business of bankruptcy. While the rules of bankruptcy might be consistent, but we know how different each person’s circumstances are, which is why we never offer overly simplified solutions.
We work directly with our clients and help to manage their individual and unique situations. If you’re ready for greater peace of mind and a path to increased financial stability, our team is ready to help. Get in touch today to start the process with our expert assistance.