3 Positive Sides of Bankruptcy You Should Know

a business man with files on the tableIn a 2017 survey, researchers found that across the U.S., Alabama had the highest filing rate when it comes to bankruptcy — at 554 for every 100,000 people. This is followed by Tennessee, Georgia, and Illinois. Interestingly, Hawaii, Vermont, and Alaska had the least number of bankruptcy filings per 100,000 people. Nobody wants to be poor, at least financially speaking. There are cases, however, when filing for bankruptcy is the only option.

If you’re already working with a bankruptcy lawyer in Provo, Utah Bankruptcy Professionals lists some positive sides that you should know.

Your 401(k) retirement and pensions are safe.

When you file for bankruptcy, you don’t lose it all. Under the proceedings, your government retirement accounts and your pensions are safe. There are also cases wherein the law will allow you to keep some of your property — albeit limited — under Chapter 7. This still depends on the state where you live, though.

You can still get some credit.

Most people are afraid to file for bankruptcy because they know it will affect their ability to obtain credit in the future. Yes, but this doesn’t last forever. Depending on where you live, you can get new credit lines after a year. Some take three years, but the important thing is that you can still get credit even if it means at a higher interest rate.

You can work with specific lenders.

While it could take years before you can get new credit, you can look and work with specific lenders who are catering to people who have filed for bankruptcy. If you’re in need of capital to get back on track, there are groups and companies that can help you.

READ  Mistakes that New Business Owners Should Avoid

There’s a bright side to bankruptcy and there’s a lot of help given to people who are taking huge risks to fix their financial problems. Don’t be afraid of bankruptcy. Remember, it’s not forever.