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When you are standing at a terrible financial crossroads, it can seem as if the entire world is feeling your pain just as sharply as you are. However, there is always a road to recovery, no matter how bad the situation may be at this moment. Now is not forever, and sometimes a few years is the only difference between being in a terrible place and being in a far better one.
While many people are afraid of going to bankruptcy court, often the price of losing some property and some credit is far outweighed by the improved quality of life you will experience. The following are some great reasons to take bankruptcy as the lesser of two evils.
You Can’t Care for Your Family
For most people who file bankruptcy, this is not about being able to afford another fancy thing or go on a great vacation. Many of the people who incur terrible levels of debt did not do so because of any kind of crazy spending. In fact, many of the people who are deepest into debt accumulated it through medical bills over which they had no control whatsoever. If your family must suffer for your debt payments, it’s time to file.
You Can’t Pay Your Debts
If you don’t have the money to pay off your debts, it’s time to get them settled up. In some cases, some debts will stay on the books. But in others, almost everything will be washed away with bankruptcy. In either case, it’s generally for the best. Filing for bankruptcy is far better than having a lien or garnishment put into force.
Avoid Garnishments and Liens
Wage garnishment is a method some creditors use to collect on the debts people owe them. This means that the creditor gets a portion of every paycheck you earn. In the case of a lien, your creditor will get paid before you do if you sell your house or some other possession. Either case is far from optimal, as both of these effects can be taken off the table by filing for bankruptcy.
Sometimes you really do need a fresh start. In the case of things like extreme medical bills, this isn’t a mistake you made. This is something over which you most likely had little to no control. So there’s no sense being punished for it year after year, when in only a few years you can be rebuilding your life with a lot less stress. Eventually, even your mistakes need to be forgiven.