Deciding to file for bankruptcy does not come easy. People delay for all sorts of reasons. For example, you might hope that you can somehow resolve the situation. Or you might delay it because you feel ashamed to file.
Yet, in many cases, people look back and wish they had filed sooner. What might some of the advantages be of doing it now rather than holding out?
You can relieve yourself of the mental stress
Debt can do a lot of damage to your mental health. It can be so stressful that it affects your relationships, work and enjoyment of life in general. Filing for bankruptcy puts you back in control of a situation where you may have felt powerless to stop yourself from sinking further. It can allow you to lose that heavy mental burden you have been carrying around and look forward to a brighter future.
You can start to rebuild your credit
Filing for bankruptcy will cause your credit rating to drop further, but, unless you actually repay those debts it will do that anyway. Once you file, you can start to rebuild your credit rating slowly but surely. Some lenders offer loans and credit cards targeted at people who recently filed, to help you do this.
You reduce the risk of taking on even more debt
If you don’t file now and don’t suddenly get more money coming in, you might be tempted to take on more loans to try and stay afloat. In desperate times, people often accept the only deals anyone will offer them, which can be at an extortionate rate of interest.
With appropriate legal guidance to examine your options, you can make a better decision about whether to file for bankruptcy now or hold off.
