When it comes to bankruptcy, a lot of people worry that filing for bankruptcy is to fail. This just isn’t the case. To file for bankruptcy can bring positive elements to your financial life. It can be a useful tool to get out from under debts that you can no longer manage. Here are two ways that you benefit from bankruptcy.
Freedom from Credit Card Debt
The majority of Americans have over 5,000 dollars in credit card debt. With credit cards, you also have to consider the interest that you need to pay. It can take you years to pay off that kind of debt. If you are in credit card debt that you cannot pay off within the next five years, it may be time to think about filing for bankruptcy.
You should consider bankruptcy as freedom from your credit cards. You cannot keep any of the credit cards that you have when you file bankruptcy. You have to include all of your debts. If you file for bankruptcy and do not include a creditor, that creditor may drop you as soon as he or she finds out about the bankruptcy.
A Fresh Beginning with Your Finances
While true that bankruptcy does affect your credit score, you still have a fresh start when it comes to your finances. You no longer have to worry about credit card debts or other debts that may have been holding you back. You may have felt like you were always drowning in bills. Now, you may have an opportunity to save money for your future. You may be able to put your income towards more of the necessities than you could before.
When someone files for bankruptcy, it is common for him or her to feel like a weight has been lifted. Bankruptcy does come with some downsides. Your bankruptcy will remain on your credit score for 10 years, you could have difficulty opening up new credit cards, obtaining loans, or buying a house after you file for bankruptcy. The good news is that you can still rebuild your credit.
If you feel like you are drowning in debt, there are options to help you get out of it. Some people fear the consequences of bankruptcy, but you should not see it as a failure but instead as a tool to get a fresh new start. To find out if you qualify for bankruptcy, consult with a lawyer, like a Chapter 7 bankruptcy lawyer from Pioletti Pioletti & Nichols.