A Fresh Financial Start
With the year coming to an end, you may be delving into your finances. Your financial health and wellbeing may soon be at the top of your newly minted New Year’s Resolution list.
A bankruptcy fresh start may be the fix that you are looking for to jump start your financial wellness plan. One of the main goals of a bankruptcy is the fresh start. Think of it as wiping the slate clean. You could file a bankruptcy, eliminating all of your debt (with some exceptions) in the process. It is a fast and efficient way to put your financial woes behind you and start anew.
A common concern or fear that clients express is the negative impact a bankruptcy can have. I like to reframe that concern or fear into a positive.
Example: Bonnie has $50,000 in medical bills. The hospital sold the debt to a debt collector that has brought a lawsuit against Bonnie. She considers filing for bankruptcy, but is concerned that it will haunt her for 10 years. Eventually, Bonnie has a judgment against her for the $50,000 plus attorney’s fees. The judgement is reported on her credit report as unsatisfied. She sets up a payment plan with the debt collector for $350/month. She pays the agreed upon payment for 12 months, which costs her $4,200, but has had to stop making payments because her credit card debt has increased by $5,000 in the same time frame. She is running in place.
In that same period of time, Bonnie could have paid an experienced bankruptcy attorney to file a Chapter 7 bankruptcy. She would have already received her discharge and would have been debt free. Instead of languishing for years in a payment plan she could ill-afford, Bonnie could have filed bankruptcy and started rebuilding her credit sooner rather than later. The bankruptcy can free you from the constant cycle of robbing Peter to pay Paul. Think of the time and energy that you will no longer have to devote to shifting money around to make minimum monthly payments.
Bankruptcy is available to individuals and couples who need a fresh start. Yes, it is reported on your credit report for 10 years. However, the bankruptcy also shows that you have addressed your debt and have come out on the other side debt free. In most Chapter 7 bankruptcy cases, you wipe out all of your debts and retain all of your assets.Achieving financial stability and wellness through a bankruptcy may be exactly what you have been looking for. A New Year is an opportunity for a fresh financial start.