Financial Distress & Health: How Can Bankruptcy Help
When financial distress and debts become a burden on health, is there a way out? How does bankruptcy offer respite from financial debt? Well, when financial crisis goes out of control and there is no respite anywhere, it does take a toll on the debtor’s health. A survey examined the effects of debt on the mental health of a debtor and concluded that those with high debt stress were at a higher risk of cardiac arrest, digestive problems, ulcers, depression, suppressed immune system, and chronic pain. Luckily, not all is lost and bankruptcy can be the safety pill in that situation.
The Effect of Financial & Debt Stress on Health
Stress triggers the fight or flight response in the body, causing the release of stress hormones. Prolonged or chronic stress due to a long-pending financial debt can add a lot of burden on the brain and body, resulting in hormonal disturbance, blood pressure problems, heart problems, and suppressed immune function. It would not be wrong to say that stress is a killer and chronic stress can even kill you.
Someone suffering from financial troubles is under constant stress to pay off the debt. The loss of income and overwhelming debt can add to the stress levels, taking a toll on the person’s health. When there is no way out, bankruptcy can still offer help and hope. How? Let’s see.
How Can Bankruptcy Help
A financially distressed person can file for bankruptcy when overwhelming debts is the source of financial stress. Under Chapter 7 of bankruptcy law, all unsecured debts are eliminated. This includes pending medical bills and credit card payments. However, there are some non-dischargeable debts that still remain pending, including child support obligations. When someone files for bankruptcy under Chapter 7, all of their property will be sold to repay debt, though there are some exceptions here.
Chapter 7 aims to give the debtor a respite from the debt burden by bringing their monthly expenses below their income.
On the other hand, under Chapter 13, the debtor is on a manageable repayment plan. Again, the goal here is also to reduce their expenses below their income. The debtor must be faithful to the repayment plan for five years, after which, the remaining debt pending and eligible for discharge in Chapter 7 is discharged.
How Does Bankruptcy Relieve Stress?
Under both chapters of bankruptcy, creditors are legally bound to cease all collection efforts until a bankruptcy judge lifts the automatic stay. The debtor can have peace of mind that there will be no creditors running after them. When there no financial burden sucking peace out of your mind, you can experience a sense of relief from stress and anxiety.
Is Bankruptcy Right?
Well, since bankruptcy can help relieve a debtor of debt burden, it is not the right solution in every financial crisis. If you have any concerns or doubts with regard to bankruptcy, get in touch with a professional debt lawyer. An experienced bankruptcy attorney can determine if bankruptcy is the right way to deal with financial stress and avoid health risks that accompany it. Consult with the best bankruptcy lawyer today.
