Facing overwhelming debt and financial hardship can be a particularly stressful time in one’s life. As you try to navigate the coming days, weeks, and months, you will be faced with tough decisions, including whether or not you should consider filing for bankruptcy. While this can be an important time to consult an advisor such as a bankruptcy attorney, you may want to take this time to reflect on how bankruptcy can actually be positive, and provide you and your family with certain benefits. Here are just a few of the positive benefits of filing for bankruptcy, and how doing so can help get you out from under your crippling debt by giving you a fresh start.
Dismissed Unsecured Debt
One way in which bankruptcy can help give you a fresh start is through the dismissal of any unsecured debt. When filing for bankruptcy, any debts you have which are not backed by an asset, such as a home or business, are discharged. These debts include debt acquired through medical and credit card bills.
Relief from Debt Collectors
When struggling with debt, encounters with creditors and collections agencies can become a daily reality. Getting back on one’s feet can be difficult enough without the stress of constant reminders of one’s debt. One of the benefits of filing for bankruptcy is that once you file, there is a stay period where creditors are not allowed to contact you and can be penalized if they do, which can give you a break from the harassment.
Protection of Certain Property
Filing for bankruptcy in a timely manner can actually help to protect you and your family by giving you a chance of keeping your home. Depending of the jurisdiction in which you live, when you file for bankruptcy, and the value of your home’s equity, your home could be protected from liquidation by filing for bankruptcy.
While filing for bankruptcy can be a scary, overwhelming process, for many individuals, doing so can be a positive experience as well. Filing for bankruptcy allows you to get a fresh start financially, and can help to distance yourself from the stress and anxiety of your previous financial struggles.