No matter what you do, how much you earn and how arduously you fight to maintain the delicate balance of your household finances, it’s all-too-common to find yourself trapped in a quagmire of debts. Modern living is expensive and in an era of wage repression, it can seem that no matter how hard we may work, how much overtime we pull down, how many sacrifices we make or how much we try to squirrel away, it never seems to be enough. We rely on credit cards to help us through life’s unexpected expenses and loans to help us keep our finances afloat. While we may feel like we’re treading water and paying down our debts a little at a time, all it takes is for a week of unpaid sick leave, failing to get the raise you were banking on or, a quiet patch for your small business or an unexpected redundancy to drag you deeper into the debt whirlpool.
If your debts have progressed beyond the scope of consolidation to mend, you may be faced with the option of bankruptcy. You may, in fact, rail against it as you perceive it as the end of your financial wellbeing forever, or at the very least an admission of incalculable defeat. However, as anyone from the Law Offices of Ronald D. Weiss will tell you, bankruptcy needn’t be the end. Indeed, in many cases, it can set out the path for a brighter financial future. Here’s why…
You’re far from alone!
If bankruptcy is on the horizon for you, you’re in good company (financially speaking at least). There are a great many financially and entrepreneurially successful men and women who have been made bankrupt and gone on to find both wealth and success afterwards. From Will Smith and Lady Gaga to Walt Disney and President Donald Trump (whose companies have been declared bankrupt no less than 6 times), there are no shortage of wealthy and successful people who’ve overcome bankruptcy.
It can, in the long run, help your credit score
You could be forgiven for thinking that being declared bankrupt is the end of available credit forever. But this is far from the case. In fact, bankruptcy can actually be advantageous for your credit rating in the long term. By getting rid of “delinquent” account reports like late repayments and high credit balances or improving your debt-to-credit ratio, you could see your credit rating improve in as little as 6 months in the case of Chapter 7 bankruptcy (the most common kind).
It can actually save your small business
Filing for bankruptcy needn’t be the end of your small business, either. In fact, in many ways, it can be your best defense. It protects your business from creditors who may otherwise attempt to liquidate your enterprise. You will still have to repay your debts but a bankruptcy application gives you the legal ability to reduce or delay your repayments or both.
After all, your creditors want their money back and they’ll be happier to get it back slowly when under a structured and court-approved repayment plan.
It can cause you to fix your bad habits
Finally, if you have allowed bad choices and habits to compromise your financial wellbeing, bankruptcy could be the learning experience that could see you mend your ways and steer your finances back into the black for good!