While some people may believe that filing for bankruptcy is humiliating and shameful, it is actually the responsible thing to do in situations where you find yourself to be financially doomed.
The process has significant long-term benefits that can save one’s financial and personal life. Despite its immediate challenges, here is why filing for bankruptcy may be good in the long run.
The Long Term Benefits of Filing for Bankruptcy
Debt Relief: Upon filing for bankruptcy, unsecured debts including credit card debt, medical bills or any personal loans are eliminated. This offers people a clean financial slate and a sigh of relief without unpaid debts looming over their heads.
Chance To Rebuild Credit: While your credit score will be impacted before filing for bankruptcy due to unpaid debts with soaring interest rates, it will not always stay so low. After filing for bankruptcy, you can improve your credit score by making better financial choices and planning payments ahead of time, which also allows you the opportunity to qualify for better credit terms over time.
Automatic Stay Protection: Filing for bankruptcy triggers an automatic stay, which protects people from credit harassment and lawsuits for the time being. Automatic stays offer them immediate stability from any new debts that may arise.
Long-Term Financial Planning: For many people, filing for bankruptcy can be a wake-up call on how they want to plan their finances and spending in the future to avoid another financial downfall. They can access and restructure their financial decisions that led to them having to file for bankruptcy in the first place, and make choices that will reduce the risk of falling into debt.
Filing for bankruptcy does not always have to be a drag. It can open the door for a fresh start. Contact our experts at Todd Cushner & Associates today for more information regarding filing for bankruptcy.
