5 Ways Bankruptcy Can Make Your Life Better

1. 5 Ways Bankruptcy Can Make Your Life Better There are valid reasons to avoid declaring bankruptcy. But there are also positive aspects in declaring bankruptcy, ones that will give you peace of mind and help you restructure your financial life. Declaring bankruptcy brings with it emotional and social stigmas. Friends and family may lower their esteem of you, with the corresponding emotional backlash for you. If that is a very big deal for you, then it may stop you from proceeding with this kind of debt relief. You will also find it more difficult to obtain credit, be it a car or home loan, or getting a new credit card. A simple check by any financial institution will reveal your declaration of bankruptcy, since it is a matter of public record. And as a public record, anyone can access it. But few individuals go around looking for bankruptcy reports, specially if you are and ordinary working man. Be aware that any creditors willing to

2. lend after your declaration of bankruptcy will also charger higher interest costs. But bankruptcy proceedings have been instituted to protect individuals and companies from a debt that could have lifelong implications. So how can bankruptcy make your life better? A bankruptcy declaration will free you of debt. You will be able to plan better, be mentally healthier, and be less stressed. If it is a first-time declaration, the terms of the bankruptcy may be resolved in less than a year. You’ll be free to start building a personal savings account. Imagine being able to put aside money that would have otherwise gone to debt service. It could be money used for emergencies, for a little entertainment, even a nest egg. Less work hours – at the time of your financial crises, you will have been working extra hours to cover your debt. With financial pressures being eased, you may not have to work as much just to make payments. Or, you can continue working extra hours but the money you earn can applied elsewhere, instead of going to debt service. A timely retirement is now a realistic option. With more money free to be applied to savings or even investments, one can think of growing that retirement fund instead of worrying about how to cover the next debt payment.

3. Your experience with debt leading up to the bankruptcy will have taught you a few hard lessons about money and asset management. Coupled with the advice you will have gotten, it’s safe to say that you will have come out of the experience a financially savvier person. There are hundreds of thousands of bankruptcy cases filed each year, so if you do decide to file for bankruptcy, you know that you are not alone having financial trouble. However, declaring bankruptcy is an option of last resort. By asking the advice of a Licensed Insolvency Trustee, you may become aware of other options that may be applicable to your situation without the attendant social and emotional costs. Content Source