Bankruptcy is not a state of financial ruin. Rather, it is a chance for financial recovery. Here are some advantages of filing for bankruptcy.
Cut your debts.
You can be granted a discharge of debts, which is a reduction or elimination of debts under certain conditions that demand you to be honest. Using fraudulent ways to avail of this benefit will certainly deny you the necessary approval.
Avoid house foreclosure, and get that car back.
Nothing brands you a loser more quickly than losing your house and car to foreclosure and repossession. Bankruptcy lends you leverage by realigning your payment schemes, allowing you to compensate for missed payments and therefore keeping your house or getting that repossessed car back.
Lessen the impact of losing your job.
Losing your job is unfortunate enough, but the consequences are even direr. Your salary vanishes along with benefits, bonuses, insurance, and the security that a regular income brings. Things you take for granted, like your utilities, become major sources of headache. Bankruptcy, while it won’t sustain you indefinitely, will provide you with a crutch until you can get back on your feet.
Keep your utilities.
As if it’s not enough that you just might lose your house and your car, suddenly you are faced with the certainty that any day now, you will have to mull your predicament in the dark. By filing for bankruptcy, you can at least be sure you will not soon be denied basic services.
Medical bills need not make you sick.
Medical crises are a fact of life. It is also a fact that medical bills can ruin your life by rendering you financially drained. Filing for bankruptcy can help offset the costs of medical care.
As a result of your debts, unpaid taxes, and other causes, part of your hard-earned salary can be deducted as means of payment. This is called wage garnishment, and you can end it by filing for bankruptcy.
Bankruptcy provides the option to consolidate your hefty student loan debts. In this process, you can take out a loan to offset another one, or balance an asset against a secured loan which
you will then use to service or pay off other loans, leaving you with just one loan to worry about. Furthermore, you will worry about it less since payment now will be completely based on your current paying ability.
Put an end to creditor bullying.
If you are backed to a corner by your debts, you might trigger the predatory instinct in some of your creditors. Perhaps your financial obligations lead them to believe you are powerless and they have every right to hound you over the phone or treat you with contempt. Bankruptcy will effectively halt such offensive behavior.
Being bankrupt doesn’t have to mean being broke and living under a bridge. In fact, it may be the first step to regaining financial control.