The Positives of Bankruptcy
The word bankruptcy tends to fill most people with feelings of dread. It’s hard to deny the fact that the word has typically negative connotations, It is usually associated with financial chaos and the diminishing reputations of those associated with it.
While people tend to only focus on the negative aspects of bankruptcy, there are a number of positives that can come as a result of considering it as an option.
There has been a steady rise in personal insolvency rates over the last couple of years, indicating that more people are considering this as an option.
If you are wondering whether bankruptcy is a viable option for you, read on to find out about some of the positives associated with it.
Bankruptcy triggers automatic stay
An automatic stay is an injunction that is issued as soon as you file for bankruptcy. Once this is issued, it stops all lawsuit and collections against the debtor. Therefore, when you file for bankruptcy, you will no longer be at risk of having property and other possessions repossessed. You will also stop receiving calls and letters that threaten to sue you.
It gives you a chance for a fresh start sooner
As soon as you file for bankruptcy you can start taking steps to getting your finances back under control and improving your credit score. Without the ability to put a stop to the chaos that is credit gone awry. Some people would never get their finances under control again, but bankruptcy can enable that to happen.
You’ll start to improve your rating
Although, a bankruptcy filing can remain on your record for up to 10 years, it will eliminate many debts. Individuals will begin improving their credit rating after filing for bankruptcy.
It gives you a chance to reflect
While it doesn’t sound like the most glamorous situation to be in. Filing for bankruptcy is a good opportunity assess and review your financial history. Law that stipulates that anyone who files for bankruptcy is required to receive some form of credit education. Therefore, you’ll have to chance to find out how you can avoid making similar mistakes in the future.
To understand how bankruptcy can be a positive way out, and help you get back on your feet, contact our team today on 0330 159 5820.