Financial stress may have you feeling hopeless about the future and your ability to live debt-free, but fortunately, there are options to help you regain control of your situation. Bankruptcy often gets a bad rap from many people in Tennessee, but the reality is that while it does affect your credit and other aspects of your financial reputation, it can also provide a fresh start as you implement changes to have more control over your finances. 

Consumer Affairs has shared a list of some of the reasons why filing for bankruptcy can actually be beneficial for you. These include the following:

  • Your credit cards and any card-related debts are made obsolete. 
  • You will no longer receive incessant phone calls from creditors and collectors who are requesting that you pay your debts.
  • You can avoid depleting important savings and retirement accounts.
  • You can immediately turn your focus to rebuilding your credit and overcoming your financial past. 

As soon as bankruptcy proceedings are underway, it is imperative that you begin implementing measures to prevent anything similar from happening again in the future. Start by creating a reasonable budget for yourself and weeding out all unnecessary expenses. Consider the ways that you can actively rebuild your credit without assuming excessive debts. Be prompt about paying any bills and live within your means. With consistent efforts on reestablishing your credit and financial security and a clear vision of where you want to end up, you can overcome all of the perceived negative effects of having to file for bankruptcy.

The information in this article is intended for educational purposes only and should not be taken as legal advice.