When you hear the word “bankruptcy,” you probably have subconscious ideas about being a failure. You might think a lot of negative things about having to go this route. However, there are many positive aspects to filing, and it can be a refreshing new beginning. Here are three big advantages to filing for bankruptcy:

1. You are getting rid of a stressful burden.

Injured Piggy Bank WIth Crutches
Creative Commons License Ken Teegardin via Compfight

Debt is one of the most stressful things you will have to deal with in life. It can be very draining and exhausting to be in so much debt and to feel like you will never dig yourself out of the hole that you have gotten yourself into. When you file, you will be discharging your debts and giving yourself room to breathe.

2. It’s easier to get out of contracts.

If you have been trying to get out of an apartment or car lease or if you are trying to switch cell phone companies, but you are worried about cancellation fees, filing for bankruptcy will definitely be a good thing. If you let the cell phone company, for example, know that you intend to surrender the contract in the process, you will not have to pay any cancellation fees. This will be one less thing that you will have to worry about.

3. This is a new beginning for your credit.

So many people think of this process as being the end of your credit. In reality, though, it’s easier to rebuild your credit after taking this course of action because you won’t be drowning under mountains of debt. Many clients actually reported an increase in their credit score after filing as they debt to income ratio increased with the discharge of debts.

Do not think of filing for bankruptcy as a failure or an end of your credit. Sometimes it is the best way for you to take charge of your finances. It will give you peace of mind and discharging all of your debts will be extremely liberating. A bankruptcy attorney will be able to help you to determine your best course of action.

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