It goes without saying that you never want to find yourself facing bankruptcy. Should you reach this point it means something has gone terribly wrong regarding your finances. While it’s not the ideal path forward, it’s important to note that there are financial benefits of filing for bankruptcy. There are reasons to strongly consider this should the time come. 

Here are five of the top financial benefits of filing for bankruptcy:

1. Stop Debt Collectors from Contacting You

There is nothing worse than debt collectors harassing you while you’re trying to relax at home or get things done at the office. Fortunately, when you file for bankruptcy, debt collectors are required by law to stop contacting you. This gives you the breathing room you need to clear your head and decide on the best path forward. 

2. Eliminate Wage Garnishment

Wage garnishment can make it difficult to meet your monthly financial obligations. Filing for bankruptcy can stop wage garnishment dead in its tracks, thus immediately improving your financial circumstances. 

3. Prevent Foreclosure

Have you received a notice of foreclosure from your lender? Are you concerned that this could happen sooner rather than later?

Bankruptcy allows you to address this serious issue head on. Thanks to an automatic stay, your lender must stop its foreclosure-related activity. This could buy you enough time to figure out what to do next. 

4. Debt Discharge

With Chapter 7 bankruptcy, you’re able to discharge some or all of your debts. So, when you finally leave the process in the past, you won’t have nearly as many liabilities weighing you down. 

Note: Chapter 13 bankruptcy focuses on the repayment of debts, not discharge. 

5. A Fresh Start

For many people, this is often the top financial benefit of filing for bankruptcy. You’ve had enough of living in debt. You’ve had enough of living in fear of debt collectors. Once the bankruptcy process is complete, you’re in position to take advantage of a fresh start. You can do whatever it takes to avoid your mistakes from the past and ensure that you’re better prepared for the future. 

Conclusion

Before you say “no” to bankruptcy, consider the financial benefits. You may find that it’s the best way to tackle your situation at the present time. And once your bankruptcy filing is in the past, you’ll look back and realize that you made the wrong choice.