Bankruptcy Isn’t Always a Sign of Financial IrresponsibilitySaturday, June 15th, 2019, 9:01 am
If you’ve filed for bankruptcy in the past, you probably told as few people about it as possible. Almost everyone sees bankruptcy as an embarrassment and as a sign of financial failure. After all, declaring bankruptcy does appear to be tantamount to saying that you’ve been so horrible with your money that you can never fully pay back your debts. But this isn’t always the case. While some people do declare bankruptcy because they’re financially irresponsible, that’s not true for everyone.
It’s a Way of Trying to Be More Financially Responsible
People often go into bankruptcy not as a way of escaping their debts, but as a way of better managing them. Bankruptcy can help consolidate debt and reduce monthly payments so that you can start paying back your obligations without going further into debt. It may be necessary in order to be able to afford housing, utilities, food, and other necessities while still making payments on your debt. It’s a sign that you’re trying to get your finances under control again.
It Offers Relief in Times of Unexpected Hardship
Everyone faces unexpected hardships in life. When those hardships affect you financially, bankruptcy may be your only option. You may have suddenly lost your job or are facing piles of bills due to a sudden medical emergency. Maybe your student loan debt is so massive you don’t see any way out of it. While some debt, including student loans, aren’t always discharged through bankruptcy, the process can still help you get a handle on your payments. If you’re filing for bankruptcy due to unexpected events that you simply couldn’t prepare for, you’re not irresponsible with money. In fact, it’s likely just the opposite.
It Can Save Your Credit
The longer you go with missing payments, the worse your credit score and credit history are going to be. That can make it difficult to secure housing, make necessary purchases, and even get a new job. Bankruptcy, if done at the right time, can help prevent severe damage to your credit score. In fact, it can even help you rebuild your credit. It’s a tool that more people need to use correctly.
Are you thinking about bankruptcy? If you are, you need to talk to an expert on the subject. Contact Michael F. Kanzer & Associates today to discuss your situation and if bankruptcy is the right option for you.