Bankruptcy is not Magic
Alleviating financial distress by filing for bankruptcy can seem like life-changing magic. Bankruptcy can change your life and enable relaxation about ongoing financial struggles.
Bankruptcy Can Give You Control
For many, filing for bankruptcy is the smartest decision they ever make.
If you were driven to bankruptcy due to events beyond your control, filing can help you regain control of your situation.
Let’s say your financial problems began when you lost your job. You were forced to borrow against your home or take money from your savings account just to make ends meet. When that money ran out, you had to use credit cards for day-to-day living expenses. Within just a few months after your last paycheck, you could be looking at tens of thousands of dollars in debt you cannot afford.
Bankruptcy can help you eliminate that debt and help you make a truly fresh start. Once you find another job, you’ll be able to move forward free of all the burden of that phase in your life.
Bankruptcy Helps You Correct Past Mistakes
If you’re in your current financial situations because of mistakes you made with your money, bankruptcy can still help.
Often filing for bankruptcy is the “final straw.” It’s the thing that makes someone who had made poor financial decisions up until this point really look at their lives and figure out what needs to be changed.
Bankruptcy also gives you tools that will help you get things back on track and not make the same mistakes in the future once you’ve cleaned up your debt situation.
What’s Life Like After Bankruptcy?
There are several changes you’ll notice in your life after bankruptcy.
Initially, it might be a bit more difficult to get credit and it could cost you more because of higher interest rates or fees associated with high-risk cards. Over time, you’ll notice this effect wanes.
Eventually, you’ll gain more control of your finances and not need to report any information to the trustee who was overseeing your case. How long this takes depends on whether you file for Chapter 7 or Chapter 13. To learn more about how your finances are handled in different chapters of bankruptcy, check out this article from K10 Channel 10 News.
One of the most significant changes that occur after bankruptcy is your ability to save increases and you can begin to plan for your future. This not only protects you from having to consider bankruptcy in the future, but it also ensures you can live comfortably as you grow older without relying 100 percent on Social Security payments.
Finally, you’ll notice your stress levels will improve not just because you’ve eliminated credit problems, but because you’ll be financially able to handle emergencies that come your way. Having the chance to save money means you’ll be able to handle the financial nuisances in life, such as broken-down vehicles or problems with household utilities.
At the end of the day, bankruptcy is not really magic, but it can feel like a magic change has taken place in your life after you file.
To learn more or to discuss whether bankruptcy can help you, contact the Law Office of Robert M. Geller at 813-254-5696.