The Stress Of Filing For Personal Bankruptcy

n the last 20 years, most Americans have gotten very complacent with the use of credit. People nowadays, don’t save up for vacations, automobiles, clothes and even household items. Why save up when you can put it on plastic. Individuals have a tendency to spend more than they can afford and figure they can just pay for it at later time. This is the reason that so many people are in the situation of having to make the decision to file for bankruptcy. The decision to file Chapter 7 or Chapter 13 bankruptcy should be well thought out as the stigma from bankruptcy follows a person via their credit report for up to 10 years. After filing for bankruptcy, credit will be virtually shut down for some time. No longer will an individual be able to buy all the luxuries they enjoyed in the past. It’s hard for some to understand why their credit privileges were cut off because of the bankruptcy filing.

People filing for bankruptcy should first take a serious look at their life’s choices. Making mistakes one time is acceptable, and learning from those mistakes is imperative. Before filing it would be wise to see a financial advisor and take a look at the entire financial picture. The decision to file should be done with much thought, and avoided if possible, because of the toll it takes on your personal credit.

The two reasons that Congress created personal bankruptcy was to give creditors a fair chance recovering debt that is owed to them, and to give individuals a fresh start by discharging all their debt. Bankruptcy no longer carries the mark of shame, as it did in the past, but it still is a very emotionally draining process. The topic of filing for bankruptcy is obviously not a favorite subject of conversation. But when it comes to getting out from being buried under a mountain of debt, the topic of personal bankruptcy can be very exhilarating. When you have dug such a deep hole and you feel there is no way out, filing for bankruptcy could be your answer.

Going through personal bankruptcy can be psychologically exhausting. So it’s important to take the steps to make it as easy on yourself as possible. Before filing bankruptcy individuals should set some goals on how to become debt-free. The first step would be to make a budget. Take a look at your income and compare it to your current spending habits, as this is an eye-opener for most individuals.

Next, out of the spending habits, evaluate the difference between your wants and your needs and start cutting. Make sure all of your early goals are easy to accomplish so you don’t get discouraged. Keep everything written down that you want to accomplish to make sure you are following your plan. Making all the cuts to unnecessary items will help you get back on track much faster. Doing this, along with filing personal bankruptcy, should put you back up to speed in a few years. Removing the stress of debt can give you a new lease on life and a new attitude about spending.

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All You Need To Know About Personal Bankruptcy

Being in debt can be incredibly stressful and worrying, potentially having long-term implications for both mental and physical health. Resolving debt problems quickly and efficiently is therefore of vital importance for a large number of individuals across the UK. In this article one of the most high-profile debt solution options will be investigated: Bankruptcy.

Personal Bankruptcy

This may be used as a debt solution when an individual is unable to pay off their debt. Either they voluntarily file a petition for bankruptcy with the courts or their creditors can file one on their behalf. Once they have been declared bankrupt, all of their bank accounts and credit cards will be closed and the individual in question may be required to sell some of their unnecessary assets to help pay off the debt.

However, this form of debt solution comes with very serious implications and should therefore not be considered lightly. It is important for any individual to get the best personal bankruptcy advice available before filing a petition. Although a bankruptcy will only last one year, the record will stay on your credit files for six years and besides trouble taking out credit in future, you could be faced with difficulty in the job market as a number of sectors may not employ people who is either in an un-discharged bankruptcy or has been declared bankrupt in the past.

There are numerous companies who are able to offer expert advice and potentially introduce the individual in debt to a range of alternative debt solutions, such as the less drastic Individual Voluntary Arrangement (IVA).

Who Can Go Bankrupt?

Personal bankruptcy becomes a possibility when debt repayments to creditors can no longer be met and debt levels are beyond management through other methods. If this situation arises an individual can then either voluntarily file for bankruptcy, or their creditors can file a petition with the courts on their behalf.

How Long Will It Last?

In most cases, bankruptcy will last for a year. However, it is possible for an individual to be required to make monthly payments from their income to their trustee for a longer period. If this is the case, these payments will usually continue for a period of three years, and the details of which will stay on an individual’s credit file for a total of six years.

Implications

When petitioning for personal bankruptcy, an individual’s Official Receiver will need to be informed about all of their assets. It will be up to them whether any of these assets can be retained. Although they will be able to keep necessities, such as tools required for their job, pension funds, clothes and household goods needed for basic living, the individual in debt will probably be required to give up your unnecessary goods. These could include an expensive car, boats and vacation homes.

Once you one has been declared bankrupt, all of their bank accounts and credit cards will be closed. The news of the bankruptcy may be announced in the local newspaper and difficulty may be faced in the search for future employment as numerous job sectors, including the Police, Prison officers, the Armed Forces, Accountants, Solicitors and others in the financial sector, largely refuse to employ someone who is in an un-discharged bankruptcy or has been declared bankrupt in the past.

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