How Bankruptcy Gets You Both a Fresh Start and a Mental Reset
Dec. 28, 2021
There's plenty of misinformation about bankruptcy in the media. Many media outlets are owned by billionaires who seek to publish an unforgiving attitude to financial hardship. Those who have never experienced the torturous experience of debt, such as billionaires and the financially conservative, will have an unsympathetic and unrealistic view. Many who face bankruptcy will struggle to ask for help, given the unnecessary social stigma attached to the practice. In traditional areas, consumers seeking advice on bankruptcy might even be discouraged from filing. Let's set the record straight about debt.
Many people have little personal control about getting into debt in the first place. They may have acquired it in a stagnant economy, during periods of job loss, or even have debts from medical bills that are astoundingly expensive even with insurance. Then, after someone is in debt, the psychological pain can increase when the companies exact collection practices. These are ceaseless, intrusive, and designed to guilt people into paying debts.
When you cannot pay, it takes a toll upon your mental health and bankruptcy is the correct option for you. In America, it can be easy to fall into the debt trap since a lot of predatory lending occurs. During times of light financial regulation, banks have made loans that the consumer is unlikely to repay. Young borrowers and those who did not achieve financial literacy in their schools or from their parents will find that getting into debt is a lot easier than getting out of it. Some will never be able to get out of debt, so legal assistance is required. In this case, firms like ours are here to help.
Exploring Chapter 7 Bankruptcy
There are different types of bankruptcy in the United States, but Chapter 7 is the one that benefits most consumers. It discharges unsecured debts, which include credit cards, medical bills, repossessions, payday loans, personal loans, etc. Each of these loans presents a unique hardship to the consumer.
Credit cards scare customers by charging interest rates that make paying off the debt a time-sensitive issue. As the total debt increases, the consumer is more likely to have a mental breakdown from overworking themselves than repay the company. Payday loans are even worse and charge astronomical interest rates while preying upon the most vulnerable in society, those living paycheck-to-paycheck. Payday loans are predatory because they prey on people who are underpaid and rely on advances of their own salary to get by. In general, the business of debt is ugly and few are informed about how it works.
These other situations are equally stressful. For example, medical loans might not charge interest; but, if someone has no insurance, they can end up owing hundreds of thousands of dollars if they are ever seriously injured. Lastly, repossessions, personal loans, and other debts can financially cripple an individual. Once someone is in debt, they become focused on repaying the debt and will often struggle with their mental health. The companies will kick into collections mode and hound the person for the debt until legal action is taken. Sometimes, unprofessional collection agents can even threaten illegal action against the debtor, such as throwing them in jail or prison. Consequently, it's important to get a lawyer to represent the case as soon as possible and to avoid spiraling into fear and depression.
Chapter 7 can help eliminate these outstanding debts and this helps people with their cash flow. However, most people who file for bankruptcy will say that it's more of a mental relief than about the money. Between embarrassing collectors calling them constantly and corporations sending sensitive financial information in the mail where it can catch the eye of nosy neighbors, being in debt is like being an invisible financial prison. File for bankruptcy today and free yourself from not only the debt, but the poor treatment in society.