Deciding to file for bankruptcy is a huge decision, and it will probably change your life in many ways. It is natural to feel apprehensive about filing and concerned about any related hardships that may lie in waiting.
However, bankruptcy does not necessarily leave filers in financial ruin and could improve non-economic parts of your life. Here are some changes you may expect after filing for bankruptcy—some good and some to be expected.
What are some positive outcomes?
Has your debt left you feeling anxious, stressed or even depressed? One of the most positive aspects of bankruptcy is that you may experience immediate relief from debt-related mental health problems once you file.
Other possible advantages:
- Your physical health (high blood pressure, etc.) may improve
- Creditor demands (phone calls, emails, letters) for payment will stop
- Less economic stress helps you focus on your future
- You may succeed in keeping your home under Chapter 13 (or 7, if eligible)
Bankruptcy can help you realize that many of your problems may have been tied to your debt, which could improve your overall outlook.
What about the disadvantages?
You may already know them, and if you are considering bankruptcy, you have probably made your peace with them. Your credit score will likely suffer, and it may take some time to repair it. Like most, you may also have trouble obtaining new credit or face prohibitively high interest rates. Still, once you have completed your bankruptcy, you can start again, this time with the education and experience to help prevent future problems.
Legal guidance and knowledge of Connecticut law may help you avoid pitfalls that could delay or invalidate your bankruptcy. It is also an effective way to decide between a Chapter 7 or 13 consumer bankruptcy.