It is common to assume that anyone who has filed bankruptcy ended up in debt over mismanagement of funds.
While there are some people who overspend and load up their debt accounts, many people have succumbed to bankruptcy over uncontrollable life situations.
Loss of a job, spouse or medical condition can all bring about unexpected financial pressure.
Regardless of the reason for entering bankruptcy, those who successfully complete the case have an edge of those of us still suffering with high debt burdens.
Credit Collection Termination Debt resolution is the most sought after benefit of bankruptcy, but it isn't the most immediate outcome of the filing.
Many people find that the relief provided by the automatic stay order is highly rewarding.
No longer hounded by harassing phone calls and threatening letters, you can be free to work on your debts without the additional stress of managing creditors.
The automatic stay order can cease all communications from creditors, stop a repossession and even prevent a foreclosure, all benefits that are unique to the bankruptcy process.
Asset Protection Many people find that their need for bankruptcy stems from the risk of losing assets and property to creditors.
Asset seizure and liquidation can quickly become an issue when secured debts become delinquent, leaving you with little time for finding help.
Filing for bankruptcy is the fastest way to stop creditors from taking your assets while you work out a repayment plan.
Debt Elimination The obvious perk of filing for bankruptcy is the elimination of debt burdens.
Whether you obtain a complete debt elimination through Chapter 7 bankruptcy or repay the debts under a structured Chapter 13 plan, having the debts resolved provides instant financial freedom.
Armed with a fresh new balance sheet without the heavy effects of debt, you are free to pursue the path of cleaning up credit and gaining control over finances.
Financial Training One of the least talked about, but most beneficial, aspects of a bankruptcy filing is the financial lessons learned in the process.
The credit counseling requirement teaches valuable information about using credit wisely, avoiding future debt traps and smart money management skills.
Although these courses are available to anyone looking to improve their financial situation, it can take the hard lesson of a lengthy process to really drive the point home.
The information gained at credit counseling is a silent perk to bankruptcy that arms you for a solid financial future.