If your financial security is in jeopardy, it’s common to feel overwhelmed and helpless about regaining your stability. It is important to remember that even those who face an excessive amount of debt still have options, and they can turn everything around by making a few strategic decisions. Bankruptcy law provides everyone the opportunity to get a clean slate when they need it most. Below, attorney William A McWhorter in Pell City, AL, explains how filing can improve your future financial security.

Bankruptcy Law Attorney Shares 3 Benefits of Filing

1. A Fresh Financial Start

Both chapter 7 and chapter 13 bankruptcy can discharge a significant portion of your debt. Even if you file for chapter 13 and have to pay back creditors, you will still be debt-free in three to five years, once you complete the terms of the payment plan. This provides you with the fresh start you need to regain your financial footing and make your money start working for you.

2. A Legitimate Savings Account

People who struggle to make even the minimum payments on their debt rarely have any additional income to put toward savings. As a result, they end up living paycheck to paycheck, and when disaster strikes, they are forced to take on even more debt because they do not have a sizable emergency fund.

When you discharge debt through bankruptcy, you can take the money you put toward the minimum payments and start building a savings account instead. Even if you can only afford to put away a tiny percentage of each paycheck, it will add up over time until you eventually have a sizeable emergency fund. 

3. A Better Credit Score

It will take time to repair your credit after filing for bankruptcy, but most people can secure new lines of credit within a couple of years. Additionally, the sooner you take action, the quicker you can discharge your debt and stop missing payments, which only hurts your credit history more.

If you want to explore the other advantages of filing or learn more about bankruptcy law, turn to William A McWhorter in Pell City, AL. He’ll provide the quality legal guidance you need every step of the way to get your financial life back on track. Visit his website to learn more about his range of practice areas, or schedule an initial consultation with the bankruptcy law attorney today by calling (205) 338-4411.