If you are currently struggling with debt, it can be helpful to know you are not alone, nor does your financial situation mean you are a failure. Every year, the United States Courts discharge the debts of thousands of Americans in personal bankruptcies due to numerous reasons, many of which are outside of their control.
Although many people dread the thought of bankruptcy, you do not have to see it as a “bad” thing. On the contrary, there can be several benefits, depending on your situation. If, for example, a recent divorce or medical emergency has put you in a difficult position, receiving a discharge may substantially improve your life.
1. Regain the ability to focus on what matters
When you are drowning in overdue bills, it can be hard to prioritize the things that matter most. However, credit card bills should never come before food or rent. With the financial relief of a bankruptcy discharge, you will be able to put your family, home and well-being first.
2. Improve your mental health
Speaking of prioritizing, how is your mental health these days? According to psychology researchers, financial troubles can hurt your brain as much as your wallet. Studies show that it is not uncommon for people to experience decreased cognitive functioning while financially struggling.
3. Have the chance for a fresh start
One of the great things about a bankruptcy discharge is the new start it can offer. Having significant debt can be a heavy burden, and sometimes, a fresh start can make a world of difference in a person’s life. Bankruptcy can be a great way to move forward.
At the end of the day, filing for bankruptcy is a right of every U.S. consumer. Despite some lingering myths, there can be several benefits.
