Are You Drowning in Debt? 4 Reasons Why Bankruptcy Isn’t the End of the World
Monday, March 26, 2018, 6:00 AM | Leave Comment
Finding yourself up to your neck in debt is one of the worst feelings in the world, especially is it’s keeping you from doing the things you want to with your life.
Even in this situation, though, many people avoid bankruptcy as if it is even worse.
Here are four reasons that going into bankruptcy isn’t the end of the world.
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It Gives You a Fresh Start
Despite its obvious hassles, declaring bankruptcy lets you settle your debts and start over fresh. It will take time and effort on your part to re-establish your credit afterward, but it can be done.
This is especially true if you’re younger and have many years ahead of you in which to rebuild your finances.
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It Relieves an Enormous Stress
If you’re deeply in debt, you already know how incredibly stressful it can be to try to make your finances work while still owing immense amounts of money.
Though it may seem daunting, finalizing a bankruptcy will take this stress off your shoulders. From there, you can focus on making things better for yourself, rather than dwelling on past financial mistakes.
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It’s Less Expensive Than Staying in Debt
There’s no doubt that bankruptcy makes life difficult financially, but the truth is that it’s often less expensive in the long run than continuing to make interest payments on debts you can’t possibly afford to retire.
Over the long haul, there are many cases in which it’s cheaper to declare bankruptcy and start over than it would be to continue trying to pay your debts.
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Rebuilding Credit Is Easier Than You Think
It’s a commonly accepted myth that people who go through bankruptcy will be completely unable to borrow money for seven years afterward.
The truth is that, while bankruptcy may hurt your credit a bit, the credit market is much more forgiving than it used to be. There are even credit cards you can get after bankruptcy to help you rebuild your credit more quickly.
Just be sure to use them sparingly and responsibly to avoid falling into the same trap again.
Bankruptcy is a major decision and one that should be made only after careful consideration, but it isn’t the end of the world. It is important, though, to go about it correctly.
Be sure you contact a good bankruptcy attorney who can properly structure your bankruptcy so as to most benefit you when it’s over.
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Hannah / Freelance Writer
Email: hannahwhittenly@gmail.com
