Filing Bankruptcy? Benefits, Consequences and a Way to Grow

money-buy-happiness-lrgFiling bankruptcy isn’t something that people dream about, but it happens everyday. As Americans, the average person in this country is drowning in debt, whether it be from student loans, credit cards or loans that that they cannot afford to pay back – it’s quite normal for us in America to live a life full of debt, until our debt is passed on to loved ones as the vicious cycle continues.

How can we break away from it?

Though filing bankruptcy is definitely not the go- to way in order to break free from the debt curse, it is an option (a viable one, even) for many. Want to know why?

Well, let me share with you my current story and experience.

My name is Ranequa. I am 26 years old, African-American, female and I am drowning in debt. Aside from my student loans, I have about 20 grand worth of credit card debt, and thousands in hospital bills. All of these have already hit my credit by now, and my credit score is now officially in the 400’s. Yes, you read that correctly. The 400’s.

It took years to accumulate this debt, but here we are. After joining a debt settlement program, I realized that while this program has its advantages (I can discuss this in another blog post), it will take years for my credit to be restored.

So, I decided about two months ago: I am going to file for bankruptcy.

It’s going to cost me about $600 to file and another $600 to close. So, I am waiting until May or June 2019 when I will have the funds to do so. In the meantime, the debt collectors will keep calling, and I have to put up with the fact that this is my life unless I file. That is my only way out at this point.

Now, I want to note that every situation is different, and we can discuss the various debt settlement or repayment options in another blog post. I will share resources and knowledge from my own personal experience with research as well.

Thus, here are just a FEW benefits of filing bankruptcy listed below. Filing bankruptcy has a really bad public perception, however, I advise you to not care about or listen to what the world has to say about it. The truth is, many people do it all of the time. Is it an ideal situation to file as ‘bankrupt?’ Of course not. However, it is an option toward having access to recovery and a brand new beginning.

Here are a few benefits to filing bankruptcy (that are not discusses nearly enough):

  1. You don’t owe anybody anything anymore! No loner crippled by past debts.
  2. You get to restore your credit.
  3. You get to start all over.
  4. You get to implement better financial decisions.
  5. If you play your cards right, you will qualify for just about everything.
  6. You can use your money to save.
  7. You can have more expendable income, for traveling and leisure without penalty.
  8. You will be more cautious of credit cards.
  9. You will be more cautious of loans.
  10. You will be more dedicated to paying things off, AND on time.
  11. Prevent repossession.
  12. Prevent being sued.
  13. No evictions, foreclosures, wage garnishments and utility shutoffs.
  14. You will have a peace of mind.


In case you were wondering, I am filing Chapter 7 bankruptcy. Want to know more about it, and my process? Stay tuned for my next blog post, and I will discuss debt repayment options more in depth, including this one in particular, filing Chapter 7 bankruptcy.

Then, you can decide which debt repayment/settlement option is the best for you!

Stay tuned. Leave any questions or comments below! 🙂 


Source (to be continued):

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