Being in debt might mean that you’re not able to afford the basics. You’re also struggling to pay your bills, dealing with harassing calls from debt collectors. Mostly, you feel like there’s no way out. Despite all these negatives, many people think that life after Chapter 7 bankruptcy will be worse. But, there are actually many ways it can lead to a better life.
1. After bankruptcy –> More room in your budget
You can discharge most of your unsecured debt in Chapter 7 bankruptcy. This includes medical bills, credit cards, signature loans and more. With these debts off your plate, you should have more money to devote to your living expenses. You can stay current on all your bills and focus on living life instead of battling your debt.
2. After bankruptcy –> Collections calls end
As soon as you file bankruptcy, all collections calls from creditors will stop. In most cases, once you start the process with me, I’ll stop the calls even before the case is filed. This can take a lot of stress out of your life. If you’re dealing with harassing debt collectors, no doubt you cringe when the phone rings, worry about calls at work and on your cell.
3. After bankruptcy –> Credit score rebound
If you’re late on your bills, have maxed your credit cards, and are missing payments or only paying minimums, your credit score is likely dropping every month. As long as you remain in over your head with debt and maxed out, your score will drop or be stuck lower than you’d like. Once you file Chapter 7, and your unsecured debts are gone, your credit score will start bouncing back immediately. In addition, there are steps (we can help with suggestions) you can work on rebuilding your credit score even faster!
4. After bankruptcy –>Set aside savings
If you’re in debt, you may find it impossible to save up an emergency fund or set aside money for retirement. The inability to save is a sure sign that your finances are out of control. After a Chapter 7, a well-balanced budget with room built in for savings should be possible.
5. After bankruptcy –> Peace of mind
A number of studies have linked excessive debt to stress. Coping with collection calls, the stress of scraping by, and worrying that you’ll never have financial breathing room can make life difficult. After Chapter 7, the discharge of debt and end to collection calls can make a significant difference in your quality of life (emotionally and even medically), and give you peace of mind.
6. After bankruptcy –> A brighter future
When you’re in debt, it can be hard to think beyond the next bill or the next paycheck. This means it’s hard to plan for the future, or even see the future. After Chapter 7, with unsecured debt gone and more room in your budget, it’s possible to plan for tomorrow – whether it’s a college fund, retirement account, or a long overdue vacation.
To Sum Up: Bankruptcy is hope – not homelessness. Most people view bankruptcy as a last resort – and it is definitely a serious step. But if you’re in too deep with debt you can’t afford to pay, it’s already serious. Bankruptcy offers hope: hope for a stable financial future, hope for a life free of debt collectors harassing you, and hope for a life of better opportunities thanks to less debt and a better credit score.
To find out more about whether bankruptcy can help you, please feel free to view other articles on my website, or set up a free office consultation or phone call with me, Peter Blinn, for anywhere in and around the Marion County, Sumter County, Citrus County, and Lake County areas.