Bankruptcy Is Good for You and the Economy

Submitted by Rachel R on Thu, 05/07/2015 - 9:59am

Bankruptcy Is Good for You and the Economy

Bankruptcy can make your life much better

Image Source: Flickr User Ben Smith

Most people have a negative perception about bankruptcy. You may also – and if this is keeping you from turning to bankruptcy to get yourself out of a terrible debt situation, that's a problem. Bankruptcy is seen as something to be feared and ashamed of – when, in reality, it can be the best thing for your finances and your shot at a happier future. You may worry that people will know you filed or feel guilty for not paying on your debts that you owe. But you shouldn't let these emotions get in the way of obtaining the financial fresh start you deserve. Here's why.

You can contribute to the economy faster if you file bankruptcy

If you are maxed out on credit cards, paying bills late and are living paycheck to paycheck, most of your money is going to banks rather than the greater economy. But, if you opt for the bankruptcy route, you'll be able to contribute to the economy faster and more fully. Once you discharge your debts, you can get new credit and can start spending in all sectors of the economy rather than just sending your money to financial institutions. This helps everyone. Being mired in unmanageable debt helps no one.

You can clean up your credit report faster

If you are deep in debt and are missing bills and only making minimum payments, your credit score is taking a beating every month. As long as your debts pile up, you can't pay what you owe and are getting in deeper and deeper, your credit score can't recover. However, if you file bankruptcy, within just a few months, you can start rebuilding your credit that will lift your score faster. This leads to new credit offers which, if managed wisely, will keep improving your FICO score.

You can get rid of a lot of stress in your life

Let's face it, being in debt is very stressful and using bankruptcy to lift the load can change your life for the better. If you and your spouse argue over money (this is extremely common), getting your debt discharged can help end this marital discord – it can even save your relationship. If your job relies on a security clearance, your debt may mean you could lose it – and that's stressful. But filing bankruptcy can help you keep your clearance and your job.

You can focus on what matters in life

Your entire focus in life should not be on your finances, but when you're mired in debt you can't pay, it consumes your attention. You are likely often too stressed to enjoy yourself and may feel like there's no end in sight to your unfortunate circumstances. But if you can get out from under the debt, you can start to appreciate what you do have – your health, your children, your loved ones and other great things in your life.

Filing bankruptcy can change your life

There should not be a stigma surrounding bankruptcy. It's legal, and it's available for a reason. For those that happen to get into a debt situation they can't get out of without an intervention, bankruptcy can be a godsend. Imagine going from living paycheck to paycheck to being able to save money, plan for a vacation or not have to worry about every dollar that leaves your hand.

Chapter 7 bankruptcy can discharge most of your unsecured debt – this includes credit cards and medical bills. Chapter 13 bankruptcy gives you time to catch up on back bills. Both can be life changing. Imagine not having to be worried that it's a debt collector every time your phone rings. Imagine not feeling overwhelmed and hopeless about your finances.

If you're deep in debt, dealing with debt collections and unsure how to get yourself out of the mess you're in, call us. The North Carolina bankruptcy experts at the law office of John T Orcutt will show you how bankruptcy can change your life for the better. Call us at +1-919-646-2654 for a free consultation today. We have offices in Greensboro, Raleigh, Fayetteville, Durham, Garner and Wilson.

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