If you’re thinking about filing for bankruptcy, there’s a good chance that you’ve heard all the cautionary tales about how bankruptcy will destroy your credit and economic reputation. The truth is that the naysayers who warn against the bankruptcy process have never been in deep debt themselves. They have no understanding of the impact of piles of unpayable bills and nonstop collection calls. They also fail to recognize that doing nothing and continuing to struggle with debt does nothing to rebuild credit – while filing for bankruptcy eventually does.

The truth is that those who are considering bankruptcy are already looking at credit scores that seem beyond hope, and on top of that their debt isn’t going away. This creates tremendous emotional harm: people facing insurmountable debt often suffer from depression, anxiety, insomnia, and severe stress. As much as filing for bankruptcy may feel like a surrender, it is relieves the sense of panic and despair that comes from not being able to meet existing financial obligations.

In addition to the emotional relief, studies have shown that filing for bankruptcy actually restores credit scores relatively quickly, especially when compared to those who continue to struggle with debt. The Federal Reserve Bank of Philadelphia conducted a study that showed that in the 18 months before filing for bankruptcy, consumers’ credit scores dropped precipitously, where once they filed for either Chapter 7 or Chapter 13 the decline in scores stopped and filers’ credit scores rebounded. Though scores still remained low, the filers effectively stopped digging themselves into deeper economic holes, and at the same time they put a stop the collection calls, wage garnishments, litigation, and other stress-inducing processes.

When you file for bankruptcy, you give yourself the chance to start over economically, wiping out credit card debt, medical debt, and other financial obligations committed to long ago. You also will find yourself eligible to take on small amounts of debt far sooner than most of the naysayers predict – in some cases as soon as 18 months after your debts have been discharged.

To get a better sense of how filing for Chapter 7 or Chapter 13 bankruptcy will change your life, contact our experienced bankruptcy attorneys to set up a time to discuss your situation.