How Bankruptcy Can Relieve Financial Stress and Offer a Fresh Start

According to Psychiatry.org, an annual poll showed that 77% of Americans are becoming increasingly anxious about the economy. We can see this anxiety at work when we log on to social media, one video and post after another, expressing the frustration of rising costs and inability to afford basic life essentials from healthcare to food.

To manage these rising costs, Americans are having to turn to credit cards and loans to make ends meet. Americans have $1.14 trillion in credit card debt as of the second quarter. Coinciding with this is an increase in bankruptcy filings from last year to now.

While there is still a long road ahead to make life more affordable for the average citizen, bankruptcy, thankfully, can extend a much-needed lifeline to those facing financial struggles. To demonstrate that fact, let’s take a look at the top five ways filing for bankruptcy reduces stress.

1. Immediate Debt Relief

One of the most impactful ways bankruptcy reduces stress is by offering relief from overwhelming debt. When bills keep piling up with no end in sight, it can feel like a heavy weight pressing down on you every day. Bankruptcy, particularly Chapter 7, can eliminate many unsecured debts, including credit card balances and medical bills, lifting much of that burden. For those who qualify, this fresh start gives you the chance to stop worrying about how to pay off unmanageable amounts of debt and start focusing on rebuilding your financial stability.

2. Automatic Stay Protection

An aspect of bankruptcy many find reassuring is the automatic stay that goes into place as soon as you file. If you have been battling constant calls from creditors or facing threats of wage garnishments, the automatic stay is like a shield. It immediately halts most collection efforts, giving you some much-needed breathing room. Suddenly, the calls and letters stop, and creditors are no longer legally allowed to harass you. This relief from daily harassment is often one of the first moments of peace people experience after filing.

3. Preventing Foreclosure and Repossession

Beyond just stopping creditor calls, bankruptcy can also help protect your most valuable assets, your home and your car. If you’re at risk of losing your home to foreclosure or having your car repossessed, filing for Chapter 13 can provide a critical lifeline. It allows you to formulate a repayment plan to catch up on missed payments, giving you time to keep these essentials. Knowing that you won’t lose the roof over your head or your way of getting to work can offer a tremendous sense of relief.

4. A Clear Path Forward

One of the most paralyzing aspects of financial trouble is the uncertainty of how to fix it. You may feel trapped, with no clear way out of the debt cycle. Filing for bankruptcy provides a structured legal process, giving you a roadmap to follow. Whether it’s through Chapter 7 or Chapter 13, bankruptcy sets clear steps to resolve your financial situation. Once the process is complete, you know exactly where you stand, and that clarity alone can lift a huge mental burden. It offers the chance to start fresh with a plan to move forward instead of being stuck in the same financial struggle.

5. Emotional and Mental Relief

Beyond substantial financial and legal relief, filing for bankruptcy can also bring a profound sense of emotional and mental release. Struggling with debt can feel incredibly isolating, leading to anxiety, depression, and even tension in relationships. When you file for bankruptcy, you’re not only taking control of your finances but also giving yourself permission to let go of the guilt and stress that comes with it. It’s an opportunity to reset and focus on the things that matter most—your well-being, your family, and your future.

Don’t Go Through Bankruptcy Alone

There is no need to feel stressed by the legalities of bankruptcy when there are bankruptcy lawyers available to help you wade through it all. If you are from the Baltimore area and are in need of a bankruptcy lawyer to help you start your journey to a better financial future, Adam M. Frieman is here to help.

With over 25 years of law experience, Adam has worked on a wide range of cases, from bankruptcy to criminal. During this time, he also co-founded one of the most successful bankruptcy law firms in Baltimore. However, with his experience, Adam has learned that bigger does not mean better. That is why he now has his own firm where he personally represents every one of his clients. You can count on him to handle your case with utmost care.

To learn more about how Adam can help you, contact us today!

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