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Could Bankruptcy Be the Start Of Your Financial Freedom?

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Could Bankruptcy Be the Start Of Your Financial Freedom?

Things can always get out of hand. It’s possible to end up left with zero options except for bankruptcy.

Feeling defeated and hopeless is quite common in such a situation. Having to file for a business or personal bankruptcy may feel like your entire world is falling apart. Often people can avoid having their assets lost but unfortunately, it is not always the case.

What should always be understood is that absolutely every single person in the world can end up facing some sort of financial problem sooner or later. Hardship happens but there is always hope for a brighter future.

Although a bankruptcy has a negative impact on a credit report, people are always surprised by how fast they can rebuild their credit score and obtain new credit if they show they have turned their life around.

Bankruptcy is often seen as failure. But it should be seen as what it really is: an opportunity for a fresh start. You basically get to put your money problems behind you and then get a chance at a new beginning.

Reasons to File for Bankruptcy

 

In some cases there are no alternatives available to filing for bankruptcy. This could be due to so many different reasons. The most common ones are job loss, divorce, overwhelming credit card debt and medical bills. No matter the reason, the most important thing you need to know is that bankruptcy can happen to anyone. Nobody plans a bankruptcy, it just happens when a series of unfortunate events line up.

You need to understand that even if filing for bankruptcy is a tough decision, you will feel free and relieved the moment it is done. People who have been experiencing harassment from their creditors and collection agencies will be happy to know that these calls will stop with the filing of the bankruptcy.

Will I Lose Everything?

 

Many people believe that filing for bankruptcy means losing everything. Fortunately, that is false. In the United States and Canada, many assets are protected from seizure (up to a certain amount). These include your motor vehicle, household and personal goods, tools for your trade and more.

Also, if you own a house and are wondering if you will lose it, you should contact a Bankruptcy Lawyer or Bankruptcy Trustee. If its net value (sale price minus the associated loan and cost of sale) is negligible, you may very well be able to keep it.

A Fresh Start

 

The main objective to the bankruptcy law is to offer a fresh start to consumers who are suffering from financial problems and may not be able to recover otherwise. After you have been freed from your debts, you will be able to contribute positively again to the economy. Everybody benefits from the bankruptcy system as otherwise people would be stuck forever in a situation with no outlook. Bankruptcy is truly your right to make a fresh start if you have no other options to pay your debt yourself.

Have you ever considered bankruptcy? Why or why not?

Photo courtesy of: MasimbaTinasheMadondo

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Kayla is a mid-20s single girl living in the Midwest, USA. She is focused on paying off her consumer and student loans, while simplifying her life and closet. You can join her on her journey at ShoeaholicNoMore.com or follow her on Twitter @shoeaholicnomor.

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