Benefits of Filing Bankruptcy

Filing a bankruptcy isn’t as frightening as many people think it is. There are many benefits to filing, some obvious and some un-expected.

The top three benefits of Bankruptcy:

  1. Your bills go away! Or you can get a handle on them through a Chapter 13 plan. Bankruptcy simply eliminates (discharges) most, if not all, of your credit card debt, old medical bills and other unsecured debt.
  2. Creditors stop bothering you. Even if you are going to pay part or all of a debt, no one can try to collect it or even talk to you about it once a bankruptcy is filed. Finally, you will get your telephone (and life) back!
  3. You get a fresh start, a new chance without overwhelming bills. You’ll be able to pay the things that are important without robbing peter each month to pay Paul.

The top three unintended benefits:

  1. You get your dignity back. Too often being broke affects your entire outlook on life. You walk around worrying about the mortgage or the car payment. That is pretty tough on your self-esteem and can get pretty depressing. Once you file bankruptcy, however, those feelings disappear.
  2. Your credit score will return. The biggest effect on your credit score is late payments. A bankruptcy won’t help your score immediately, but since the bills that weren’t getting paid will be gone, you can rebuild your credit much more quickly.
  3. Your life comes back. Money problems are often damaging to your home life and relationships. When you and your spouse do nothing but worry about where the rent is coming from, you can get easily irritated and start fighting. No more worrying about money – no more bickering.

All in all, bankruptcy can be a refreshing change to a debt-laden life. If you’re having trouble meeting your obligations, talk to Newland & Newland LLC., it might really help.

We are engaged in the private practice of law. We are not a legal aid provider, a debt consolidator or a credit counseling agency. Pursuant to the U.S. Supreme Court 2010 decision, Milavetz, Gallop & Milavetz vs. U.S. and the United States Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, we are a debt relief agency. We help people file for relief under the Bankruptcy Code.

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL