Declaring bankruptcy and gaining peace of mind – could such a scenario possibly exist? Actually, for the many people who have unmanageable debt that is negatively impacting their financial and emotional wellbeing, declaring bankruptcy may be the most effective way to get a fresh start. While bankruptcy is commonly perceived as a stressful and unpleasant situation, gaining freedom from the harassment of debt collectors and the daily stress of constantly coming up short are some of the benefits that come with declaring bankruptcy. As a matter of fact, many bankruptcy information experts say that declaring bankruptcy is often the first step toward achieving financial peace of mind.
Step One – See the Bright Side of Bankruptcy.
For some people, bankruptcy is the only positive solution to financial problems that are out of control. Medical bills, student loans, or failed business ventures can put anyone in a position where they are no longer able to fulfill their financial obligations. Wiping the slate clean is often a much healthier alternative to continuing a struggle that can negatively affect your health and self-image.
Many people are under the mistaken impression that declaring bankruptcy and attending that 341 meeting will destroy your credit and financial standing. Actually, declaring bankruptcy can be the first step toward restoring financial good standing. Since someone who’s just declared bankruptcy can’t file again for another eight years, many creditors consider post-bankruptcy clients a safe bet. And after declaring bankruptcy, debts are no longer listed as delinquent or in default, which can actually put you on the way to a higher credit score and a healthier financial situation.
Step Two – Getting Help from an Expert
While the cost of hiring an expert bankruptcy lawyer may seem like an unnecessary one, most bankruptcy debtors say that the financial benefit far outweighs the cost. A good bankruptcy attorney will take the time to explain the bankruptcy process and the laws surrounding it – and understanding the process is the first step toward making the most of your situation
First, you’ll need to determine whether or not you qualify for Chapter 7 bankruptcy – a class of bankruptcy that allows you to completely free yourself from unsecured debt. If you don’t think you meet the qualifications for chapter 7, an expert will search for exemptions you can claim which may help you meet the criteria.
Those declaring chapter 13 bankruptcy will have to pay back only a percentage of the debt over the course of 3-5 years. Working with a professional will enable you to structure a repayment plan with the best terms possible. Once your plan is submitted, you’ll have to stick to it, so it pays to focus on getting it right.
After filing, the mountain of paperwork will start to pile up. Choosing a professional to help you work your way through it and navigate the court system will help to avoid costly mistakes. Some bankruptcy debtors choose to subscribe to an online bankruptcy monitoring system, a service that sends a weekly summary of the changes in your bankruptcy case for only a few dollars a month. Subscribing to such a service is a good way to stay on top of your bankruptcy case, and gain some peace of mind.
So is achieving peace of mind during bankruptcy nothing more than a myth? Not according to experts. As long as you follow a few simple guidelines, you can take the opportunity to say goodbye to bad debt and hello to a new financial beginning.