Do you think that bankruptcy law is only relevant to your financial future? Think again. A new study shows that bankruptcy protection actually leads to longer lives for those who are afforded additional help. Washington residents who are denied the benefits of bankruptcy protection may live shorter, less-fulfilling lives; all the more reason for our government representatives to push for increased measures to provide debt relief for those who need it.
Economists who reported their findings in the recently released paper demonstrated that the bankruptcy code can be considered a “social insurance policy” on par with other popular programs such as Social Security and Medicare. Those filers who were approved for even the more restrictive Chapter 13 bankruptcy protection were able to increase their annual earnings, lower their mortality rates and prevent foreclosure. All of these determinants mean that the filers had more longevity and a better quality of life.
As a result, these economists are arguing that bankruptcy protection provides such significant stress relief that it can actually lengthen your life span! Further, workers are given more incentive to succeed on the job if they have access to such financial protections. Consider the situation in which a worker’s job is no longer profitable because all of that person’s wages are simply being garnished and diverted to creditors; the incentive to participate in the labor force is simply removed.
Most Americans never file for bankruptcy, but an increasing amount of evidence shows that bankruptcy can provide an important safety net for those who are truly suffering. If you find yourself struggling to overcome financial challenges, you might consider the benefits of bankruptcy for your personal situation. You may be able to enjoy a fresh financial start and begin a path to solvency by seeking help from a bankruptcy attorney.
Source: Fortune, “Better bankruptcy laws could save your life” Chris Matthews, Sep. 30, 2014