Having to file for bankruptcy is often viewed as something negative, but recent evidence shows filing might actually extend your life.
Of course, nobody is saying if you have perfect credit you should rush out, overextend yourself, and get into enough financial trouble to qualify for bankruptcy. However, if you are currently facing financial challenges and spend your days stressed about how you will ever get back on track, bankruptcy can help. Financial stress is a major contributor to health problems and anything you can do to get your situation under control is going to make your outlook on life much better.
Study from the National Bureau of Economic Research Shows Positive Bankruptcy Outcomes
A recent study from the National Bureau of Economic Research compared 500,000 Chapter 13 bankruptcy records that resulted in discharge of debts once the plan was completed. Data showed bankruptcy filers saw improved earnings after their bankruptcy of up to 25 percent, they had a higher rate of employment, and a 30 percent lower mortality rate compared to debtors who’d filed and had their cases denied. According to the authors of the study, people filing for Chapter 13 bankruptcy tend to have an increased incentive to work and increased financial stability once their bankruptcy is complete.
To learn more about the National Bureau of Economic Research, check out their website.
Chapter 13 Isn’t for the Faint of Heart
Financial experts believe it’s more than just luck that allows for these positive developments following bankruptcy. It’s no secret completing a Chapter 13 bankruptcy takes a great deal of perseverance. There are plenty of things that can occur to throw you off track after getting a Chapter 13 repayment plan in place and not everyone completes their plan. Those who do are committed to their financial future and willing to sacrifice in their current situation to make their future better. It’s those people who have truly turned over a new financial leaf that achieve success with their bankruptcy and in the aftermath.
Overall, this study shows without a doubt that bankruptcy can have a positive impact on a person’s life. The negative stigma of bankruptcy has been fading for some time now and hard scientific evidence will likely help that trend to continue.
If you are in need of financial support or guidance, or you are ready to take the first step toward financial independence, we can help. Contact the law office of Frank J. LaPerch, PC at 845.942.5500 to schedule a consultation and help us help you.