By Charlie Brown
Filing for bankruptcy certainly is an emotional and complicated process that involves definitely more serious thought and action than people actually realize. Bankruptcy is said to impact your financial condition and it leads to serious consequences. In order to find out if bankruptcy is the right choice for uplifting your current financial state, you must browse through relevant information that clearly states what exactly bankruptcy could do or could not do in order to improve your precise financial condition.
Is Bankruptcy a Smart Move?
Filing for bankruptcy could be a challenging issue and requires serious thought. There could be a number of factors that need to be scrutinized meticulously before getting started. Right at the outset, you could determine if bankruptcy is at all appropriate in your case. You must consider carefully the types of bankruptcy that are available to you. It is important, first of all, to find out if you are at all eligible to file for any form of bankruptcy. Remember that there could be remarkable differences in the expense and time related to one or another type of bankruptcy.
Some types of bankruptcy may not be able to release credit card debts; they may affect your pension plans. Moreover, some bankruptcies could be creating financial issues for the co-signers. Moreover, we know that bankruptcy would invade your privacy to a certain extent. But you must never forget that bankruptcy could be the only legal recourse that is open to you. In such a situation bankruptcy is the way to go. Think positive and stay positive. Make the most of the advantages provided by bankruptcy.
Advantages Filing Bankruptcy
Seek the assistance of professional legal services before opting for bankruptcy. Bankruptcy is known to provide tremendous relief to those who are neck-deep in debt. As soon as, you file for bankruptcy, the dreaded letters and phone calls demanding immediate payment would stop at once. Your creditors would stop bothering you, once bankruptcy has been declared. Once bankruptcy order is over, a fresh start could be initiated. In many cases, you could be free from the bankruptcy order after one year. Here are some advantages associated with filing for bankruptcy.
- You would be free from mental stress and agony as the creditors would no longer bother you and you do not need to deal with them anymore.
- You would be permitted to keep a few things such as household items and a reasonable sum of money to live on.
- Your creditors would no longer be allowed to take any legal recourse or court action for getting their money back once bankruptcy order has been issued.
- The amount you owe to your creditors would generally be written off.
- Once you have filed for bankruptcy, your creditors would not be allowed to adopt any aggressive debt collection strategies.
- Bankruptcy would lead to the freezing of all interest payments.
- Once you have filed for bankruptcy, interest would not be added any more to your debt and you would not be responsible for paying off this interest.
- Your creditors would not be pursuing any legal actions against you including wage garnishment.
- Bankruptcy would be eliminating your debt in the sense that once you are released, you would no longer require making any more payments toward all your unsecured consumer debts.
- Your wages would not be garnished any longer. Your employer would not be allowed to take away money from your salary for paying your creditors.
- Some of your assets would be protected once you have filed for bankruptcy. You need to browse carefully through the asset exemption page to know more about this.
- Bankruptcy could be a cost-effective option. Most other solutions like debt management plan or debt consolidation often are more expensive when compared to bankruptcy because you would need to pay back the principal owed by you plus the interest in both the alternatives.
Your bankruptcy would normally be ending after one year. You would be informed by the Official Receiver once it is over. You must keep in mind that most debts which have still not been paid would finally be written off, however, some debts such as student loans and court fines could never ever be written off.
Author Bio: Charlie Brown is a freelance content writer. He has written many articles on technology, fashion, beauty, lifestyle, career, travel, health, etc. He has great experience in the field of writing. In his free time, he loves to spend more time in sharing his knowledge with his friends.
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