Having financial problems can be a challenging experience. Filing for bankruptcy for those who qualify, can be a beneficial way to get a fresh financial start.
People who file for bankruptcy often do so because of an unexpected financial emergency. They might be facing an illness, an unexpected increase in expenses, or a sudden decrease in income. Whatever the reason, filing for bankruptcy can help you regain financial control and get back on track. Here are some of the positives to consider when you need to file bankruptcy.
Filing Bankruptcy Will Allow You to Eliminate Debt
One of the most important things you can do to get your financial life back on track is to eliminate debt. There are many different types of debt, and unfortunately, none of them are good. Credit card debt, medical debt, and even some types of student debt can continue to affect your financial future for decades. Filing for bankruptcy can help you get rid of all types of debt, including debt that is difficult or impossible to eliminate through a payment plan.
You’ll Have a Fresh Financial Start
When you file for bankruptcy, you’ll have a fresh financial start. You’ll no longer be encumbered by debt, and you’ll have the freedom to make new, beneficial financial decisions. You can choose to pay your bills on time, keep a budget, and invest your money wisely. You can even choose to start your own business.
Being in debt to the point that you cannot manage your monthly expenses is extremely overwhelming. It can even cause depression and anxiety. Having a fresh financial start might be the most important first step in thinking clearly and finding a way toward a healthier long-term relationship with money and your personal goals, starting with the automatic stay you’ll get from the moment you file. This means no more harassment from creditors and debt collection agencies.
You Can Avoid Future Debts
Those who file for bankruptcy do so because they cannot pay their bills, or they are simply overwhelmed with the amount of debt they owe. Those who are struggling with debt sometimes don’t realize they could be taking on more debt if they aren’t careful. But when you file for bankruptcy, you can avoid making future bad choices by learning from what happened in the past.
You’ll Regain Control of Your Finances
As you proceed through the bankruptcy process, you’ll regain control of your finances. You’ll no longer be at the mercy of creditors who might be harassing you, or who might even be threatening to take you to court. You’ll be able to make your own decisions again, without the immense weight of the debt you couldn’t pay back on your shoulders.
You’ll Find Support From Family And Friends
Many people who go through a bankruptcy experience end up finding support from family and friends. They realize that everyone, including their loved ones, can be going through a difficult financial time themselves. In many cases, everyone pitches in to help out, which can be a real boost for a person going through financial stresses. Bankruptcy is serious business, and while it can be a stressful time, it’s also an opportunity to rebuild your relationship with those closest to you.
You Can Negotiate a Settlement With Your Creditors
Many debtors negotiate a settlement with their creditors by filing for bankruptcy. They try to work out an arrangement with each creditor to reduce or eliminate the amount they owe and/or defer payment until after the bankruptcy process is over. This is often a good outcome of bankruptcy, as it reduces the amount of money that you owe overall.
The Alternative: Staying in Debt Indefinitely
Perhaps the most significant silver lining to filing for bankruptcy protection is to consider the alternative. If you don’t file for bankruptcy protection when you need it, you could be paying off this debt forever. For clients with extremely high debt loads, it might not be possible to ever pay off the full amount, even if you get a second or third job.
Contact a Minnesota Bankruptcy Lawyer
Bankruptcy is a serious decision and it’s not for everyone. Before you file, consider the pros and cons in your situation. Talk to a qualified Minnesota bankruptcy attorney to get a better understanding of your options. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form.