5 Ways Bankruptcy Can Improve Your Life

Be happy with less debt

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Many people see filing bankruptcy as the end of life as they know it. In truth, though, it’s usually quite the opposite. When you file bankruptcy, it’s the end of you being stuck in overwhelming debt and the start of a brighter financial future. Here are five ways that bankruptcy can be very good for you, your finances, and your future.

#1 It Stops All Debt Collection Activities

Most people struggling to pay bills and falling behind end up dealing with debt collectors. Some debt collectors can be ruthless, and those that don’t abide by the Fair Debt Collection Practices Act (FDCPA) may threaten you with measures they cannot take and overstep the boundaries of ethics.

This can make your life difficult. If you’re getting debt collection calls on your cell phone, at work, and at home, you might feel like you’re being pursued relentlessly. Some debt collectors will call several times a day and pester you non-stop. This can make it hard to function at work and in your personal life.

#2 It Helps Boost Your Credit Score

Those struggling to make ends meet often have credit scores that are dropping every month. If you max out your credit cards or carry balances close to the limits, ever miss a payment, are late on your mortgage, car loan, or other bills, this can bang up your credit score.

A study by the Federal Reserve showed that people who choose bankruptcy have a higher credit score within 12 to 18 months after filing bankruptcy than those who stick it out. Bankruptcy automatically stops the FICO free fall and begins a credit score rebound.

#3 It May Benefit Your Health

Dealing with overwhelming debt and the stress of debt collectors harassing you can make you physically sick. Studies have shown a causal link between debt and stress and between stress and serious illness including high blood pressure, heart problems, headaches, and more.

A study by the American Psychological Association found 73% of people list money as a “significant” source of stress. Since 75% of families are in debt, according to the Federal Reserve, that’s a problem. Ditching your debt can improve your quality of life, health, and give you hope for the future.

#4 It Can Stop Repossession And Foreclosure

If you have received notice that your mortgage lender or auto financer plans to foreclose on your home or repossess your vehicle, bankruptcy can help. Because those are forms of debt collection, filing bankruptcy puts a 90 day stop to those activities and buys you time to figure things out. 

Filing Chapter 13 bankruptcy gives you extra time to catch up on past-due balances and possibly lower your auto loan interest rate. If you file Chapter 7, you may be able to buy out your auto loan for a much lower balance. You’ll have options to deal with these secured debts you wouldn’t have otherwise.

#5 It Can Improve Your Quality Of Life

For North Carolina consumers deep in debt, life can quickly become all about money. If you’re living paycheck to paycheck, choosing which bills to pay on time and which you have to pay late or not at all, the issue of finances can become all-consuming. You can’t plan for your future when you are solely focused on today.

Being in debt means you can’t save for the future, much less think about how life might be if you weren’t making tough financial choices every day. Your future well-being depends on your ability to think beyond today. Bankruptcy can help change your life and make this possible.

To find out more about the life-changing benefits of bankruptcy, contact the Law Offices of John T. Orcutt. Call +1-833-627-0115 now for a free North Carolina bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro or Wilmington.