Filing for bankruptcy, whether chapter 7, chapter 13 or chapter 11 bankruptcy can be one of the most freeing experiences of your life. However, it can also be one of the scariest moments of your life as well and many individuals have a hard time coming to terms with what filing for bankruptcy means. Rather than focusing on the negatives of bankruptcy, why not think about the positives? A positive outlook on this decision can help you come to terms with your financial part and provide a more optimistic outlook for your financial future. Below are some of the many benefits to consider when looking into filing for bankruptcy:
Financial Benefits to Bankruptcy
One of the biggest benefits to filing for bankruptcy is that you will get a fresh start with your finances. This doesn’t mean you can go out and blow your pay check every week but it does mean that some of the debts that are uncontrollable, such as credit card debts, medical bills and utility bills, will be discharged, either by negotiating a payment plan (chapter 13 bankruptcy) or in exchange for certain assets (chapter 7 bankruptcy).
Another benefit is that as soon as you file, creditors and wage garnishment will stop. Furthermore, any foreclosure notices will be halted for the time being and you will be able to breathe easily and hopefully sleep a little better at night.
Emotional Benefits to Bankruptcy
Financial stress can cause strain on every aspect of your life. Many people that are faced with financial problems will also experience anxiety, stress, depression and health concerns. You may be unable to sleep; you may lose or gain a lot of weight; you may be constantly fighting with your spouse; and you may generally feel like you are failing. Once you gain control of your finances, often the rest of these problems will start to go away and things can fall into place. Although it may not be instant, in time you can start to feel more like yourself rather than someone that is squished under a mountain of debt. This can be a freeing and positive experience.
However, there are always going to be negatives when it comes to filing for bankruptcy. The key is to determine whether the positives outweigh the negatives when making a decision about whether bankruptcy is right for you. Bankruptcy can impact your credit rating and make it hard to obtain a loan for several years after filing. It can also mean you have to liquidate some of your assets in certain instances. Furthermore, not all debts will be discharged such as tax fraud, child support payments and student loans. This means you could still be faced with debt, even after filing.
To learn more about the benefits of bankruptcy, contact our team at Buettner Law Group, LLC. We have been helping individuals across the state of Minneapolis with their bankruptcy and debt management concerns for several years and offer compassion, understanding and affordable legal assistance during this difficult time. Contact us today at 612-377-5311 for a free initial consultation.