When bankruptcy comes to mind, it is likely that you do not think of it as an investment. However, that is exactly what it is. An experienced bankruptcy attorney can help you understand if bankruptcy is right for you, but in the meantime, here are some ways that bankruptcy can be a great investment, not just financially, but for your well-being, too:
- Bankruptcy Does Not Generate Tax: If you are in serious debt and thinking about settling your debts for less than what you owe, you might want to rethink that. Any time you settle a debt for less than what is owed, it will generate taxes. Federal tax laws require that taxes be paid on money that you owed but did not pay. Bankruptcy, on the other hand, does not have these penalties.
- It Relieves Stress: Think of how stressed out you are at not being able to pay your bills. Those collection calls can be especially stressful. Stress is not just a mere annoyance, it can force you into making poor financial decisions and even cause health issues. The physical damage alone is enough to make filing bankruptcy a great investment in your health.
- Your Credit Will Start Improving: If you choose a repayment plan or debt consolidation, your credit score will not start improving until all of the debt is paid off. With bankruptcy, your credit score will start getting back on track as soon as the bankruptcy is discharged.
- Your Credit Card can Take Years to Pay Off: Depending on the amount you owe on your credit card, making only the minimum payments on the card could mean 20 to 25 years in debt. You can use that interest you save in bankruptcy to paying for something else.
- Debt can Negatively Impact Your Relationships: It does not matter whether you are married or single, the stress caused by overwhelming debt can make relationships tense and difficult. Filing for bankruptcy can literally save your relationships or even your marriage.
- Start Saving for Retirement: If you are spending hundreds or thousands of dollars each month on fees and interest for your debt, consider how much better off you would be to put that money aside for your retirement. None of us wants to work forever, right?
- You May Not Qualify Later: If you keep struggling along trying to pay your debts, you could risk a change in your income or other factor that could result in you not being able to pass the means test. If you cannot pass the means test, you lose the ability to file for bankruptcy.
- It is a Real Solution: How long have you been struggling to manage your debt? Have you been successful with whatever method you are trying? Do you think it will be helpful in the future? While bankruptcy may not be the option you prefer, it is a real solution that is guaranteed to fix your financial struggles.
Contact an Experienced Bankruptcy Attorney Today
If you are facing debt and do not feel like there is any way out, contact the attorneys at Bankruptcy Law Center today and let us help you get back on your feet financially. We can help you understand what your legal options are so you can make a good investment in your future.
(image courtesy of Mikael Christensen)