What are the benefits of bankruptcy?
Bankruptcy offers a few advantages to the individual bogged down with overwhelming debt that can’t be paid off. Each type of bankruptcy offers different advantages that can be counted on when making the decision to file. Most people who file will feel and experience the benefits and bankruptcy pretty much the same. It is not the first recommended avenue, but it is a law created to provide relief when necessary.
Peace Of Mind Means Better Health
We all know that anxiety and stress have a physical impact on the mind and body, regardless of how well you eat or exercise them. Sometimes ill effects are unavoidable when something, like debt, plagues you for weeks or even years on end. 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 for your situation, despite best attempts to be rid of it with other options. Your health is not worth more than a credit rating, so don’t risk getting sick and tired over debt when you have options within your reach.
Self-Esteem Is In Your Control
Many tout that the downfalls of filing bankruptcy include a hit to the self-esteem of any individual who takes that route. This certainly can be the case if you allow it to be. But, your credit rating is not an indicator of the kind of person you are, since situations like this happen to millions of people every year. Simply choosing to look at it as an opportunity for growth, rather than a slam to the ego, will go a long way in preserving your self-esteem as you navigate the few years after bankruptcy.
The Damages Are Not Permanent
The great benefit of bankruptcy is that the penalty for filing is not a permanent sentence. 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 the credit report can only share that information for 10 years, meaning that by the time you are ready to make a major life change, you’ll have your credit back for good. 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.
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.