People who have balances with creditors that they can’t pay often feel considerable stress. They might realize that they need to do something about the issue, but they may not have the ability to eke any more money out of the budget to pay for the bills.
For those individuals, bankruptcy might be the best avenue to get control of their finances. If you’re considering this option, it may help you to also think about all the ways that bankruptcy can relieve your stress, not just your financial burdens.
You’re taking responsibility for your debts the only way you can
Bankruptcy is a financially responsible way to handle a situation in which there are more bills than money. By filing bankruptcy, you allow your creditors to write off what you owe as a “bad debt,” and move on. You get to do the same. That’s far better than letting interest on an unpaid bill compound and eventually fall into collections.
You get an immediate end to creditor harassment
When you file for bankruptcy, the court issues an automatic stay. This prevents creditors from trying to collect from you. That alone can provide you with a lot of emotional relief. That means no more being afraid to open letters from collection agencies, no more robocalls from bill collectors and no more wondering if you’re about to be sued by a creditor. When you can’t pay up, those letters and calls can become a huge source of anxiety — but they all stop once your bankruptcy begins.
If you’re on the fence about filing for bankruptcy, it may be time to speak with an attorney about your options.