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3 reasons you should not be afraid of bankruptcy

Even just thinking about bankruptcy may make you feel ashamed; you could see it as a complete failure of your personal finances. The thought of declaring personal bankruptcy is scary and intimidating, but it happens; whether it is huge medical bills, a difficult divorce, a job loss or an unwise investment, debt can pile up beyond your ability to handle it. 

The reality is, you should not be afraid of filing for bankruptcy–if anything, you should be scared of your debt and take action to discharge it. According to this Huffington Post piece, filing for bankruptcy is actually a smart choice. Here are three reasons you should never feel scared about filing for bankruptcy. 

1. You can regain control of your finances

When you think of bankruptcy, you may imagine a process that puts your life in disarray. In fact, it is the opposite. Discharging your debt will give you the opportunity to cover your basic expenses without worrying about paying off your creditors. To put it simply, bankruptcy will put you back into the driver's seat of your personal finances. 

2. It reduces stress

As debt continues to mount up, it is probably all you think about. You dread phone calls, emails, physical mail and knocks at the door in fear it will be creditors harassing you. In the worst cases, you may even experience wage garnishment and threatening letters. Declaring bankruptcy will put an end to these stressful circumstances. 

3. It gives you a fresh start

While you may be worried about the fact that bankruptcy will remain on your credit report for ten years, that is just one small part of the bigger picture. If you take bankruptcy as an opportunity to be more responsible and build credit, you can come back better than before. 

If you are anxious about filing for bankruptcy, keep these three things in mind and remember it can be the beginning of something new and better. 

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