Once you have reached the point where you consider filing for a bankruptcy as your best option, you may find it difficult to see the positive aspects of the situation. You find yourself in an economic hole, and have no idea how you will claw your way out so you may once again see financial security. While your mind may be filled to the brim with every negative scenario, there is a bright side to using bankruptcy to get your debts under control.

A recent study by the National Bureau of Economic research revealed that filing bankruptcy increases an individual’s annual earnings, increases their lifespan, and decreases their foreclosure rate.

"Debt" plastered on the side of a building.

Photo by Daniel Lobo

 

Filing for bankruptcy can save your life

Americans carrying a large amount of debt will live longer if they choose to file for bankruptcy. Struggling with a mountain of debt that you are unable to pay can cause tremendous amounts of stress, and wreaks havoc on both physical and mental health. Independent of any other demographic factor, individuals who are unable to pay their debts have a spike in mortality rates compared to those who are more finically secure. Mortality rates are significantly reduced among those individuals who have the burden of financial instability lifted off of their shoulders.

Filing for bankruptcy allows those who owe debts that they cannot pay to come up with a feasible repayment plan. This lets them to face their bills head on instead of allowing them to remain unpaid. Filing for a Chapter 13 bankruptcy often helps individuals to avoid home foreclosure, and other devastating life events.

Increase your annual wages

In the study, authors argue that bankruptcy code is akin to a social insurance program. Like Social Security, Medicare, and Unemployment, bankruptcy involves pooling of risks so that the population can benefit overall. When a worker is denied a bankruptcy, creditors can garnish their wages. If wages are cut significantly enough, it serves as a disincentive for the individual to continue working. However, when workers are approved for bankruptcy protection, annual earnings often increase instead.

Bankruptcy is often looked down on as an abandonment of responsibilities, but in many situations it can produce the best results for all parties involved.

When you need to file for bankruptcy, figuring out your options can add even more unnecessary stress to your situation. If you need help understanding your Chapter 7 or Chapter 13 bankruptcy in Nevada, speak to a bankruptcy attorney in Las Vegas. For more information, experienced bankruptcy lawyer Anthony Deluca of DeLuca & Associates can help. Call him and his firm at (702) 252 -4673.

Please follow and like us: