What are the benefits of bankruptcy?
Bankruptcy offers a range advantages to the individual bogged down with overwhelming debt that can’t be paid off. The advantages will differ a little depending on the type of bankruptcy you choose; however, most people will benefit in the same general way. While It is not the first recommended solution, it is a law created to provide relief when necessary.
The Damages Are Not Permanent
The great benefit of bankruptcy is that the penalty for filing is not permanent. Most people start to recover in 4 to 5 years after the date of filing, beginning to repair the credit with new accounts and loans available to those in this situation. Even credit reports can only share bankruptcy information for 10 years, meaning that by the time you are ready to make a major life change, you can be back to great credit status. The key is to not make the same mistake twice. Getting further into debt while waiting on the penalties to pass is certainly the wrong direction, and will make the situation feel worse.
Peace Of Mind Means Better Health
We all know that anxiety and stress have an impact on the mind and body, regardless of how well you eat or exercise. Sometimes ill effects are unavoidable when something, like debt, plagues you for weeks or even years. The best way to alleviate the stress and improve your health is to find a solution to your problem. In your case, filing bankruptcy may be the only resolution, despite best attempts to manage it with other options. Your credit rating is not worth more than your health, so don’t risk getting sick and tired over debt when you have options available to you.
Self-Esteem Is In Your Control
The idea of filing bankruptcy can come with feelings of shame or embarrassment; which can have in impact on your self-esteem. It is good to remember that your credit rating is hallmark of who you are as a person. Debt is something that can happen to anyone regardless of who they are. It even happens to businesses. Upwards of a million consumer bankruptcies are filed each year. Bankruptcy should be seen as a helpful tool for getting back on track instead of something to be ashamed of. You are still you; regardless of filing bankruptcy.
Regardless of your reason for choosing to file, the benefits of bankruptcy are on your side. Allowing yourself time to recover and your credit to improve also means time to repair your health after a harrowing time of stress and anxiety. Allow an attorney or debt counselor to advise you on the best chapter of bankruptcy for your situation.