The word “bankruptcy” has many negative connotations attached to it. But bankruptcy is actually a positive solution for many people suffering from debt and financial stress. There are many benefits of filing bankruptcy and the process can help in a variety of ways.
Benefits of bankruptcy
There is a reason many people choose to file for bankruptcy to help them out of financial trouble. Benefits of filing bankruptcy include:
- Can save your home from foreclosure
- Discharges certain debts (credit card debt, medical bills, personal loans etc.)
- Automatic stay put in place (This prevents creditors from harassing you in order to gather payments and collect debts.)
- Can prevent future bad credit
These are some of the more tangible benefits people find after filing bankruptcy. However, one of the main benefits people get from bankruptcy is the opportunity to get a fresh financial start. Bankruptcy allows you to start with a clean slate and get back on your feet.
Filing for bankruptcy is not a light decision to be made. It is something you should think about very seriously. Filing bankruptcy comes with additional fees and certain additional consequences. However, bankruptcy does not have to be scary or intimidating. It is a positive solution for many people in different situations.
There are many resources and support systems for people thinking about filing bankruptcy. You do not have to do it alone. Consulting with a bankruptcy attorney can help you learn about the process and navigate these next steps in your life.