Most often when people think of bankruptcy, they consider the discharge of debt – they focus on the money. However, while the purpose of filing bankruptcy is to provide a fresh financial start, provide the protections of bankruptcy to those in need, and issue a discharge of debt, there are other benefits that should probably receive more attention. Filing bankruptcy can have significant positive effects on families – and most of the benefits aren’t financial.
5 Reasons Bankruptcy Benefits Families:
1. Drastic Decrease in Stress Levels: When a family is stuck in an inescapable cycle of debt, overdraft fees, late fees, high-interest rates, and legal fees, the financial distress leads to elevated cortisol levels (which means increased stress), and in some cases, can even result in a chain reaction of health issues.
2. Positive Change: Crippling debt doesn’t just weigh a person down in one area of their life, it weighs you down in every aspect of life. The reverse is true for financial freedom. Obtaining financial freedom by getting out of debt can have significant and far-reaching positive effects on the entire family. But more than that, it creates the opportunity for positive change.
3. Better Use of Time & Money: Significantly reducing debt through Chapter 13 bankruptcy or eliminating debt altogether through Chapter 7 bankruptcy is a major positive force for a family that frees up their budget, and releases time spent struggling and worrying to dedicate to the more important things in life.
4. Improved Sleep and Improved Health: Many bankruptcy petitioners experience a positive change in their life immediately upon filing. As a result of the automatic stay of bankruptcy that goes into effect when a bankruptcy petition is filed, collectors are prohibited from contacting the debtor for payment. That means no more harassing calls, no more worrying someone filed a lawsuit every time you open the mail, no more dreading that you’ll be served if you open your front door, and no more watching for the repo-man. Basically – no more constant fear of your own debt keeping you up at night. The sudden removal of this constant stress often results in improved sleep and improved health, which is a significant benefit for the entire family.
We understand that financial struggle is complex, and we want to help. If you have questions about bankruptcy and how filing bankruptcy could help your family, please don’t hesitate to contact Ken Rannick. You are in good hands with Kenneth C. Rannick P.C.