Sacramento Bankruptcy: The Benefits of Bankruptcy

Sacramento Bankruptcy: The Benefits of Bankruptcy

Filing bankruptcy can be a daunting decision. But often times it is worth it. Assessing whether a bankruptcy is worthwhile is essentially a cost-benefit evaluation. Is the cost of filing bankruptcy worth the benefit of eliminating your debt? Most consultations I do with potential clients confirms that bankruptcy is a better option than dealing with unaffordable debt. It is understandable that most bankruptcy clients who contact me benefit from bankruptcy since, after all, by the time I am called, their debt is beyond them in some way, shape or fashion.

Though bankruptcy is a negative on your credit, it is better than owing more debt than you can repay. If you are in this situation, bankruptcy can help. Don’t let the supposed stigma of bankruptcy which, often times, is perpetuated by the credit industry, deter you from benefitting from bankruptcy.

Credit is typically improved quickly after a bankruptcy. Although it remains on your credit report for years, eliminating your debt through a bankruptcy discharge immediately improves your credit position. Your debt-to-income ratio is restored, credit can easily be reestablished and your finances fixed with a bankruptcy. Countless clients have commented to me how well a bankruptcy works and that it was the smartest financial move they have made.

Restoring your financial balance is the point of a bankruptcy. It allows you to live your life free of the financial constraints of debt. Whether you are in need of restructuring your debt or eliminating it entirely, bankruptcy is a tool that can provide you a fresh financial start. Frequently, too, eliminating your debt can eliminate your angst, which often times can be as daunting–if not more–than the decision whether to file bankruptcy.

As detailed in an NPR story (podcast), bankruptcy can be a big benefit.