Under certain financial circumstances, you may consider filing for bankruptcy. This is a legal process that is normally only considered in the most extreme of situations. It allows a person to write off their debts, although it is not without its disadvantages. There are various reasons why someone might consider filing bankruptcy, but normally it is a result of their debt becoming unmanageable.
Filing bankruptcy will have an impact on your credit score and your future ability to take out mortgages and other loans. However, there may be reasons why bankruptcy could be the right choice for you. If you are thinking about filing bankruptcy in Pinellas County, here are some of the main advantages of pursuing this legal process.
Getting Rid of Your Debt
This is normally the overarching reason why people consider filing for bankruptcy. When debts have built up to the point you can no longer repay them, bankruptcy can offer you a way out and a pathway to start rebuilding your financial situation from the beginning.
Ease Your Stress
Being in a state of financial stress for a prolonged period of time can start to impact your health and wellbeing. This can create a situation where you are constantly trying to rectify the situation regarding your finances, but debt can become so unmanageable that it’s virtually impossible to make a difference. Filing bankruptcy could allow you to ease your stress levels when it comes to paying off your debt.
Put a Stop to Debt Collectors
Regular contact with debt collectors can cause stress and create a difficult situation for people who owe a lot of money. Filing bankruptcy means you don’t have to worry about being contacted by the debt collectors in most situations since they will no longer be required or able to contact you. This is one of the advantages of filing bankruptcy, particularly if you have found the contact with debt collectors stressful or it has impacted other members of your family too.
Learn More About Your Finances
People who file for bankruptcy may be required to undergo counseling and educational programs in order to learn more about the management of their finances. This can be invaluable for the future and can help you to learn new strategies and tips for managing your money in the future. Getting to a situation where you need to file for bankruptcy can also inspire you to learn more about finances yourself and develop some useful strategies and skills for the years ahead.
A Chance to Rebuild Your Credit
Filing for bankruptcy offers you the chance to go back to the start and rebuild your credit score. Getting into significant levels of debt and being unable to repay money will impact your credit score negatively, and although bankruptcy will further damage your credit score in the immediate term, it won’t last forever and can offer you the chance to rebuild it.
Stop Further Legal Action
You might be worried about further legal action being taken against you when you’re in serious debt. This could include repossession of your house and other assets, and even the threat of this can cause severe stress and worry to you and your family. Filing for bankruptcy allows you to write off the debts and stop further legal action against you.
Support and Guidance When Filing Bankruptcy
It can feel daunting to go through the bankruptcy process yourself, but it’s not something that you need to do alone. Professional support and guidance are available in Clearwater from bankruptcy attorneys of Weller Legal Group. Qualified legal advisors can answer your questions and queries about bankruptcy.