Surprising Benefits of Life after Bankruptcy
Being in debt can cause enormous stress. If debt has weighed you down, bankruptcy might offer you the relief you desperately need.
While it might seem scary, bankruptcy can provide some benefits. After bankruptcy, some of the benefits include:
No More Harassment From Creditors or Debt Collectors
After filing for bankruptcy relief, a legal mandate called the automatic stay immediately and abruptly terminates the ongoing collection efforts.
This means that wage garnishments, lawsuits, in-home visits and annoying phone calls come to a stop
Once you complete your bankruptcy case, you will receive a permanent discharge injunction which enforces the ceasing of collection efforts permanently.
Your Credit Score May Improve
You probably heard warnings against filing bankruptcy because it “stays” on your credit report for 7 to 10 years.
While it is true that bankruptcy will appear on your credit report, according to research by the Federal Reserve Bank, filing for bankruptcy could help raise your credit score.
Once you receive a bankruptcy discharge, your old debts will be eliminated and you will have a better debt-to-income ratio. This will allow you to take action to rebuild your credit over time. Your potential for reaching a higher credit score is exponentially better than if you continue struggling with mounting debt.
You Could Have More Disposable Income to Pay Debts Surviving Bankruptcy
Some debts cannot be eliminated through bankruptcy because the law gives those debts special treatment. Debts such as child support, alimony, student loans, and some taxes may remain outstanding after you complete bankruptcy.
Because you eliminated other debts by filing bankruptcy you should have more money available to pay debts not discharged in bankruptcy.
You Could Build Your Savings
Because you eliminated many debts through bankruptcy, you can begin to save money. Put putting money into a rainy-day fund, you might avoid getting back into debt if something goes wrong with your finances. You can also begin saving for your retirement.
You may only be able to put a small amount of money into your savings account each month, but even a few dollars add up over a few years.
You Could Have Financial Tranquility
This may be the greatest benefit of life after bankruptcy. The burden of being under debt causes great stress on the mind and body.
After bankruptcy, you can feel the burden lift and enjoy a financial fresh start.
Getting Help with Your Bankruptcy
No one should have to struggle with overwhelming debt. If you would like to know how filing bankruptcy could benefit you, let one of our experienced bankruptcy attorneys provide the help you need in your debt struggles. Brock & Stout’s bankruptcy attorneys have over 20 years of experience helping people obtain a financial fresh start. Contact us and let our family help your family on the path to a better financial future.