If you’re struggling with crushing debt, bankruptcy can help you not just save your financial future, but also your sanity. Here are the costs – and savings – to consider before making this step.
- Bankruptcy can free you from debt, but it isn’t free: There is an upfront cost associated with filing the bankruptcy paperwork and gathering all the documents required to prove eligibility in some cases. This cost can range per case, but when compared to the potential interest rates, late fees, and potential repossession of assets, the cost to savings ratio of a bankruptcy filing can make sense for a lot of people.
- Your credit score will be affected, but how much can depend: If you’re already behind on bills and have maxed out credit cards, your credit score likely has already seen a hit. A bankruptcy filing will wipe out much of that debt and while the filing itself will create some credit report changes that do linger for several years, the trade-off may be worth it to reduce continued late fee dings, mounting interest, and other negative credit factors.
- Bankruptcy can feel messy, frustrating, and disheartening, but it can lead to peace of mind and a fresh start: Debt can be emotionally draining. Your whole life becomes oriented about how to fend off creditors and still be able to sustain and create a future for yourself. Going through the bankruptcy process can be a time of mental and emotional upheaval, but it also can be freeing down the road. Having a plan laid out through bankruptcy can provide a way through the constant anxiety.
- Acting early can help you save: If you’re considering bankruptcy, it makes sense to reach out for assistance sooner rather than later. This can potentially prevent you from foreclosure or repossession filings, which will save you time, money, and stress.
Bankruptcy filing may not be a free or easy process, but it can pay off over time and in a number of ways. From reduced stress to fewer payments to a plan toward a sound and solid financial future, bankruptcy can actually be one of the best investments you’ll make in saving your future. Call us today for a free consultation and to get your questions answered. We can help you weigh the cost against what you’ll save and help you make the decision that’s right for you.