Never does anyone ever imagine going bankrupt. However, circumstances become such that a person hs no option but to file for bankruptcy. During this stage people often find themselves bewildered and clueless regarding their next course of action. In such instances it is hard to even imagine filing for bankruptcy.
It should be known that any knowledge which you can gain regarding the complete bankruptcy procedure would only come in handy. You should have all the knowledge regarding your rights and issues which can help you get out of problematic situations. This knowledge would help you pick up the pieces and get your life back on track.
It should be kept in mind that bankruptcy is not a viable option for everyone. So whether you should go bankrupt or not depends upon a variety of factors. If you want to know where to find bankruptcy advise, simply read on.
What are the advantages of filing for bankruptcy?
Once the bankruptcy order is over, which might take around a year or so, you can start a new life. However, the following are a few other advantages of claiming bankruptcy:
- You don’t have to deal with the pressure any more. The idea of not dealing with your creditors anymore can bring a great deal of relief.
- You can keep at least a few of the house hold goods that you possess, also you can keep a few the things like a certain amount of cash.
- Once the bankruptcy order has been passed the creditors would have to stop bothering you for handing their loan back.
- Normally the money that you owe is written off.
What are the disadvantages of filing for bankruptcy?
In order to declare bankruptcy you have to pay a certain amount of cash. The following are a few other disadvantages of filing for bankruptcy.
- If you still have an income and if it’s sufficient enough you would have to make payments to your creditors for the next three years.
- Getting credit can be a tad bit difficult. You may need at least six years of solid credit rating before you can actually ask for a loan or get one.
- If you own a home you may have to sell it off to pay all your debts. This means you would have to find a residence as a tenant.
- Any luxury items that you own and your car would have to be sold off.
- You could be at risk for losing all your pension savings.
- It can also have a direct impact on your immigration status
- Your bankruptcy would be published publicly. This means if you have kept your current status hidden from friends and far off family, they would come to know about it as well. For someone people it can be socially embarrassing.
Bankruptcy doesn’t last more than a year. Once it’s over you would be notified about it. All the debts which haven’t been paid yet are waived off.