When Bankruptcy Can Be a Very Good Thing for You

Submitted by Rachel R on Wed, 08/17/2016 - 10:20am

When Bankruptcy Can Be a Very Good Thing for You

Need a fresh financial start?

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Many North Carolina consumers view bankruptcy as a negative event – something to avoid at all costs. But avoiding bankruptcy at all costs can actually cost you a lot, including your home, credit rating and financial future. Here’s a look at how bankruptcy can be the best thing for you and your finances.

Bankruptcy Stops Collections Activities

If you’re behind on bills, maxed out on your plastic, and making late payments, no doubt you’re dealing with debt collectors. They may be calling you at home, work, and on your cell, plus sending increasingly threatening letters. This can be stressful.

Being so deep in debt can damage your quality of life, foul up your job performance, and affect your personal relationships. If you can’t pay your bills and get caught up, this type of stress may become your new reality. However, filing bankruptcy puts an end to this ASAP.

Bankruptcy Can Protect Your Assets

If your debt collectors have grown so aggressive that they’re threatening lawsuits, you may be facing court judgments against you and, in turn, liens on your home, auto, or bank accounts. That can wreck your long-term financial future – and liens can be hard to shake.

When you file bankruptcy, debt collection lawsuits are shut down and can’t proceed in court. It's worth noting, however, that if you wait until after there’s a judgment and lien against you, the situation can be much more problematic to correct. But your bankruptcy attorney can help figure out the best way to proceed – you won't be dealing with the issue on your own. 

Bankruptcy Allows You to Focus on the Future

When you’re drowning in debt, your focus may be on the past. You may be raking yourself over the coals for your spending choices, for losing a job, and for allowing your finances to get so bad. You might be plagued with regret, but you can’t go back and change anything.

Bankruptcy can discharge your credit card debt and outstanding medical bills, freeing up money to deal with your everyday bills. This can give you breathing room to start building a nest egg and saving for retirement. Being future-focused can bring great peace of mind.

Bankruptcy Can Improve Your Quality of Life and Health

As mentioned above, being hounded by debt collectors can affect your life negatively. And even if you’re not yet at the debt collection phase, being in more debt than you can afford can itself affect your life for the worse. Some studies have associated excess debt with depression, and others have tied debt to high blood pressure and other tangible health consequences. Plus, if your money is tight, your relationships can become strained due to money arguments and the stress of living paycheck to paycheck. Bankruptcy can help with all of this.

Bankruptcy Can Change Your Life

Filing bankruptcy is like hitting a financial “reset” button for many of your debts. It can help you ditch unsecured debt and get control of secured debt like your auto loan and mortgage. Bankruptcy offers you choices and the chance to restart and do better with less debt.

Why not find out more today? Contact the Law Offices of John T. Orcutt for more information about North Carolina bankruptcy. Call +1-919-646-2654 now for a free, no-obligation NC bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.

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