When you think of bankruptcy, you may not think of it as an investment but that is exactly what it is. At The Law Offices of Paul Y. Lee we are always happy to provide a free bankruptcy consultation for anyone who wants to better understand their options – just call us at 951-755-1000. In the meantime, read on for eight of the ways in which bankruptcy is a great investment.
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It Relieves Stress
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Bankruptcy Does Not Generate Tax
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Your Credit Starts Healing as Soon as Your Bankruptcy is in Danger
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It Can Take You Decades to Pay Off Credit Cards
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Severe Debt Can Have a Negative Impact on Relationships
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You’ll Be Able to Save for Retirement
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You May Not Qualify Later
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It’s an Actual Solution
How much stress are you under on a daily basis when you can’t pay your bills? How stressful are collection calls? That stress is not just an annoyance, it can lead a person to make poor financial decisions. When you add in the physical damage stress can do, it is easy to see that filing for bankruptcy can be a great investment in your health.
If you are in debt and considering settling your debts for less than you owe, consider that doing so will generate taxes. Federal tax law requires that you pay tax on the money you did not pay. On the other hand, bankruptcy does not come with any additional taxes.
If you choose debt consolidation or repayment, your credit will not start healing until you have paid off all your debts. On the other hand, bankruptcy allows your credit to start getting back on track as soon as it is discharged.
If you simply make the minimum payments on your credit cards, it could take 20 – 35 years to pay them off. Wouldn’t the interest paid on that debt be better used elsewhere?
Whether you are single or married, all sorts of relationships can become tense and difficult if you are living in debt. Filing for bankruptcy could save important relationships I your life.
If you are currently spending hundreds or even thousands of dollars every month on interest and fees for your debt, imagine how much better it would feel to put that aside for retirement.
If you wait to file for bankruptcy, you run the risk of your income or other factors changing so that you no longer pass the means test.
Whatever you are doing to address your debt today, how long have you been doing that? Has it been successful? Is there a reason to believe that it may be helpful in the future? Bankruptcy may not your preferred option but it is an actual solution.
Now is a great time to contact The Law Offices of Paul Y. Lee at 951-755-1000 and ask for a free bankruptcy consultation.
