The word “consequences” is almost always associated with negative effects and outcomes, such as losing money, feeling pain, or enduring something unfortunate and regrettable.
However, in life there are positive consequences as well. For example, people who follow their doctor’s advice and achieve a health body-mass index enjoy consequences that include more energy, stronger bones, and probably a longer life as well. Similarly, drivers who follow the rules and laws of the road are more likely to enjoy the positive consequence of safely getting from point A to point B (and avoiding a costly traffic ticket).
And indeed, there are immediate positive consequences of filing for bankruptcy that do not get talked about much, but are nevertheless relevant when people weigh the pros and cons of taking this serious — but sometimes necessary — financial step. These include:
It’s a pivotal and potentially life-changing starting point to regain control over debt.
For many people, the most debilitating and terrifying aspect of being in serious and sustained debt is that they feel powerless to do anything. They are in a hole that gets deeper and darker by the day. Aside from the obvious financial damage this does, the psychological and emotional impact is severe — and for many people, it is traumatic.
Filing for bankruptcy will NOT instantly make financial problems go away. However, it does represent a definitive — and indeed, uplifting —starting point to regain control over debt. As the old saying goes, a journey of 1,000 miles starts with a single step. For some people, filing for bankruptcy is the step they need to take, in the direction they need to go.
What’s more, people who file for bankruptcy must complete a credit counseling course within 45 days of filing. This course, which can be taken in-person or online, provides sound, practical advice that can help people get — and stay — out of unhealthy and debilitating debt for the rest of their lives.
It puts an immediate end to collection action.
Many people who are deep in debt are terrified to hear the phone ring or open their mail — because they have been traumatized by endless, and often illicit aggressive collection action (illicit in that lenders/third parties hired on their behalf must follow certain laws, but frankly, many of do not because they know the harder they push, the more likely they are to “psychologically break” a debtor and get a payment).
However, the instant that a debtor files for bankruptcy, all collection action must stop. This includes all phone calls, emails, text messages, and any wage garnishments that have been enacted per court order (the paperwork on this can take a couple of weeks, but the wage garnishment will effectively cease on the date of the filing, and any clawed-back salary will be paid out).
Obviously, filing for bankruptcy is a serious, life-changing step, and one that cannot be taken lightly. However, while the road ahead will be challenging, people who opt for bankruptcy can look forward to some immediate relief: financially, as well as psychologically and emotionally.
To learn more, contact the Law Office of Charles H. Huber today.