Many people are under the impression that bankruptcy turns your entire world upside down, leaving you with a poor credit history and unable to get any credit for long periods of time. This solution is available to those that cannot afford to repay their debt, leaving them little choice but to find out more and start their lives with a clean slate.
This debt solution works when it’s started either by you or one of your creditors. It is a formal court procedure which lasts up to twelve months. During the twelve months you will be given a list of things you cannot do and a trustee will take possession of your assets, paying off your creditors and leaving you debt free at the end, a chance to start new. Don’t worry you are able to keep your personal belongings.
There is a number of things you must know, which is why it’s advisable to get bankruptcy advice from a team of professionals who understand what this type of debt solution entails, walking you through the process and standing by you up to the end.
The twelve months before you can start afresh is just a guideline. If you choose to not comply with any of the rules, you can lose the status or it can take considerably longer. There are conditions, this usually means that you cannot take out credit during this time, sometimes you are unable to work, this depends on the type of place you hold within the company.
After the twelve months is up, you are free of debt and creditors cannot claim against you. In most cases unsecured debt is off so you can start your life fresh without the stresses and worries that comes with owing so much money.
After entering your name on to a public register, which means that you cannot hide the fact that you filed for bankruptcy. Even at later stages when you apply for loans and credit cards, you have to advice of your status. During the twelve month period, you cannot apply for credit and a few banks that will consider giving you a bank account to help you manage your daily life moving forward.
While many people are under the impression that this is disruptive to their lives and the risk of losing their jobs or not being able to open a bank account is too much to bear, for others it’s a blessing.
This is a last resort, when you realise that there is no way you can repay your debt. It’s not the first thing to look into. It’s also important that you seek professional bankruptcy advice, learn all there is about the process and how it can affect you before you make any final decisions.
One thing you must know is that filing for bankruptcy doesn’t come for free, there are charges and fees that have to be paid, which can make it difficult when you’re already struggling with debt. This is why you need to get the advice from a specialist with years of knowledge and experience in the industry. There are statements, information and forms to complete, all of which have set deadlines which must be met. Knowing the facts, knowing what to expect and knowing the process can help you decide if this is the right choice for you moving forward.