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Bankruptcy – Legally Eliminate Debt
Filing for bankruptcy should be the last option for a debtor as the effects are long term, and far reaching. This option should only be considered when the payment of debt is impossible. It is best to talk to a legal and financial consultant who will advise you on your position, and then only after you have exhausted all your resources to repay your debt should you consider this option.
Debtors who file for bankruptcy will receive a court order (called a discharge) that allows them not to repay certain debts. However, once filed for bankruptcy, the information, i.e. the date of filing for bankruptcy, and the date of discharge, both will stay on your credit report for ten years. If your records contain bankruptcy information, then it can become difficult to buy a home, obtain life insurance, receive credit, and even get a job. However, bankruptcy is a legal issue, and a right of the debtor, especially for those who are in a financial crisis, and cannot repay their debt.
Advantages:
- Most of the consumer debt is discharged.
- When creditors find out about the debtors financial crisis, they may harass the debtor. The court does not allow any sort of harassment, and protects the debtor.
- Offers you a fresh start.
- Court may not be able to confiscate furniture, retirement accounts, clothes, home, etc.*
- Temporary security from seizure of property, forcing to hand over wages, or repossession of homes or cars.
- Each country has different laws concerned with bankruptcy. Certain personal property such as clothing or homes may be exempt in one country but not in another. Please checks with a legal consultant to make sure which belongings are exempt when the court hands over a discharge. In general any personal assets can be taken.
Disadvantages:
- Bankruptcy will stay on your credit record for 10 years. It may be not be easy to obtain credit in the coming years.
- Filing for bankruptcy itself is expensive, i.e. usually around 500 pounds and above just to hire a lawyer, and this is the time when one can afford it the least.
- Bankruptcy can be filed once every six years, therefore it is not repeatable
- Your assets, and personal finances will fall into the inspection of the court, and the court will have the right to control them.
- The emotional stress, and public embarrassment is extremely painful, and there is certainly a degree of losing independence.
Bankruptcy is very much a last resort and providing you obtain help earlier enough there are many other options open to you iother than bankruptcy. Please call a qualified debt counsellor as earlier as possible to ensure you give yourself the very best chance to eliminate your debt without having to declare youself bankrupt.
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For personal advice on your debt position, please call 0845 2267 153 or use anyone of the many contact options available through this web site, Finance Inc are happy to offer you free advice in circumstances were you find yourself in debt and in many cases can offer you the correct debt management solution for you situation. |
