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There is no denying the fact that filing for bankruptcy is a big step, and one seemingly in the wrong direction. After all, you promised to repay your debtors, and the bankruptcy is a breach of that promise. Sometimes, it so happens that financial issues get out of control for various reasons, and bankruptcy is the only viable solution to regain control.
Bankruptcy is a legal "out" that is there for those who are in serious need of it. Many people come out of it wondering why they waited so long to file. Indeed, the stigma of becoming insolvent is very strong, preventing many from filing until long after the point of no return.
So, is there anything positive that can come from filing? Absolutely. Getting the petition filed with the local federal court starts what is known as the automatic stay. This stay prevents creditors from contacting you. In fact, you can contact the creditors with your bankruptcy file number and request that they honor the stay. Any violations of the stay have the potential to cost the creditor money in your favor, so be sure to document any creditors who violate the stay. What's best of all is the fact that the phone is now quiet, restoring your sanity.
Your credit rating drops immediately after filing, but even then, you can start building it up almost immediately after the discharge is entered. There are companies that offer credit cards post-bankruptcy, albeit with low limits, but they will report to the credit bureaus, increasing your credit rating as you charge and pay. Some feel that a Chapter 13 is less damaging to credit, as there is some repayment of the debt over a period of time. Just remember the lessons that were learned about handling money during the bankruptcy, and you'll be good going forward.
The best part of filing for bankruptcy is how much money it frees up. You find that all of the money you were once chasing down debt with is now available to you. Now you can fund your retirement, make investments, or simply save money for a rainy day.
Bankruptcy really is a fresh start, both in finances and life. It's as if you shed all of your burdens and stress to become a new and improved person. You'll wonder why you had so much trepidation to file to begin with.