And yet for many Americans, filing for bankruptcy is not only a viable option but one that often proves financially beneficial and gives them a clean slate. We spoke to three people about why they chose to file for bankruptcy and the impact it had on their finances. None of them had regrets about their decision to file.

Do you need to file bankruptcy to keep your house?

Some individuals do not think they need to file Chapter 7 if they are giving up their home. Filing a Chapter 7 bankruptcy case has many benefits, even if you’re not hanging on to a house with an expensive mortgage. Some of the benefits of filing for debt relief under Chapter 7 include:

What happens if you file for Chapter 7 bankruptcy?

Filing a Chapter 7 bankruptcy case has many benefits, even if you’re not hanging on to a house with an expensive mortgage. Some of the benefits of filing for debt relief under Chapter 7 include: When a lender forecloses on a home, it can request a deficiency judgment.

Is there such a thing as a free house in bankruptcy?

There’s no such thing as a free house. Chapter 7 bankruptcy is a relatively fast process. There’s no payment plan to repay debts. The filer typically keeps all of their personal property through the use of bankruptcy exemptions . What does that mean for you?

What was the number of bankruptcy filings during the financial crisis?

At the height of the financial crisis, there were nearly 1.6 million bankruptcy filings, the majority of which were consumer cases. Nearly 10 years later, the annual total has dropped to less than 800,000. But that change isn’t a reflection of economic health alone.

What happens to your credit score when you file bankruptcy?

For most people, it’s just a clean slate.” They have been free of debt since and now have a credit score in the 700s. For young people who find themselves mired in credit card debt, Reynolds sees bankruptcy as a chance for a fresh start, assuming you don’t own a home or other assets.