When you are living in debt that you cannot afford, receiving constant collection calls, struggling to keep up with bills, and living paycheck to paycheck, the worst part is feeling like there is no way out. Many people avoid filing bankruptcy because they believe life after bankruptcy will be worse; however, this is not true.

After Bankruptcy: You have more room in your budget.
A chapter 7 bankruptcy discharges most unsecured debts. These dischargeable debts include: medical bills, vehicle and home deficiencies, credit cards, older tax debts, signature loans and more. After getting rid of all of these debts, you should be able to devote more of your wages to your living expenses. This means you can focus on your current bills and moving forward with your life instead of continuing to try to pay your debts from the past.

After Bankruptcy: No more collections calls.
As soon as you file bankruptcy all collection calls must stop, and for those debts that are discharged, the creditor can never call again. Frequently the most stressful part of being in debt is the constant reminders, the harassing phone calls and letters. Once you file bankruptcy you can answer the phone with ease knowing it isn’t a collector asking why you haven’t paid them.

After Bankruptcy: Credit score rebound.
Typically, when you are maxed out on your credit cards, paying bills late and missing payments, your credit score is continually dropping. As long as you continue drowning in debt your score will drop or remain lower than you’d like. After receiving a discharge of these debts through bankruptcy, you can work on rebuilding your credit.

After Bankruptcy: Savings.
It is almost impossible to set aside money for retirement or a safety net while in debt. The inability to save is often a sign that your finances are out of control. The discharge of debts and budgeting after bankruptcy make the ability to save possible.

After Bankruptcy: A brighter future.
When you are tied to out of control debts, it can be hard to think beyond the next bill or next paycheck. With a chapter 7, your unsecured debts are gone and it is possible to plan for a future.
Bankruptcy is a serious step; it is often called the option of last resort. However, if you feel like you cannot keep up with your bills and are unable to plan for your future, bankruptcy may be the best way out of that debt.