Benefits of Bankruptcy Can Outweigh Negatives
Enjoy Life Again!
Written by Upstate bankruptcy lawyer Däna Wilkinson: I recently met with a client from Greenville to prepare for the first hearing in her bankruptcy case. She was nervous and anxious, and I’m sure she was wishing that the whole thing was over. It crossed my mind, though, that if this was the worst thing she ever has to deal with, she would be very lucky. So when I ran across a blog written by friend and colleague Doug Jacobs about the benefits of bankruptcy, it resonated with me.
I recommend reading the entire post, which starts by outlining three obvious benefits of bankruptcy: Your bills go away, creditors stop hounding you, and you get a fresh start. But Doug also points out some less-obvious benefits of bankruptcy:
My top three unintended benefits:
1. You get your dignity back. Too often being broke affects your entire outlook on life. You walk around worrying about the mortgage or the car payment. That is pretty tough on your self-esteem and can get pretty depressing. Once you file bankruptcy, however, those feelings immediately stop.
2. Your credit score will return. The biggest effect on your credit score is late payments.. A bankruptcy won’t help your score immediately, but since the bills that weren’t getting paid will be gone, you can rebuild your credit much more quickly.
3. Your life comes back. Money problems are often damaging to your home life and relationships. When you and your spouse do nothing but worry about where the rent is coming from, you can get easily irritated and start fighting. No more worrying about money – no more bickering.
So if you are wondering whether it’s worth the time, expense, and trouble to file bankruptcy, what is it worth to get your life back?
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