Despite the fact that bankruptcies give families and individuals an opportunity to escape from debt, they still carry a negative stigma in much of American society. As the economy sluggishly recovers for the middle class, the number of bankruptcy filings continues to rise, year after year, with little sign of decline. Though many people are conditioned to think that bankruptcy is a negative solution, it’s actually a positive thing for the economy.
How Forgiving Debt Boosts the Economy
When debt is forgiven, consumers are given a fresh start. Without the restraints of overwhelming debt, consumers are able to spend more and stimulate the economy around them. Now imagine this occurring all over the country. Therefore, when debtors work with a bankruptcy lawyer to eliminate their debt, they’re not just improving their financial life, they’re also strengthening our country’s economy.
Benefits of bankruptcy include:
- Increased spending. Because debtors are able to eliminate their debt with the help of a bankruptcy lawyer, they have the freedom to spend money and increase cash circulation in the greater community. Before the bankruptcy, debtors are spending money to pay bills. After working with a bankruptcy lawyer, that same money can now be spent on food, clothing, entertaining, and other outlets.
- Informed consumers. Bankruptcy forces consumers to understand that racking up debt has its consequences. This inadvertently encourages a realistic lifestyle, which, in the long run, allows consumers to become more productive members of society. As long as the bankruptcy and debt are viewed as a lesson in proper money management, they are good for the economy.
- Encourages productivity. When you’re buried under debt, it’s easy to get discouraged and lose sight of that “light at the end of the tunnel.” However, eliminating debt with the help of a St. Petersburg bankruptcy lawyer makes employment feel more worthwhile, since you can keep more of your hard-earned money. Therefore, working with a bankruptcy lawyer to erase debt not only boosts spending, but also encourages productive employment.