Advantages of Filing for Bankruptcy
You could feel like you are in the wrong person if you are in debt with someone. The person who is responsible for collecting the money will give you countless warnings. Your mailbox will also be filled with notices that are countless. The salary you are supposed to spend on treating yourself with some snack is all used up in the loan repayment. It is also quite expensive to deal with late loan payments. If you fail to pay the loan on time, the interest on the loan keeps increasing. If you are in such a situation, you could consider filing for bankruptcy. If you are bankrupt; it means that either you or the business cannot settle an outstanding debt. Filing bankruptcy has its pros and cons.
Different people have different views about bankruptcy. According to some debtors, filing bankruptcy will keep them off all the outstanding debts while some people assume that bankruptcy will leave them with nothing. The truth is that when you file bankruptcy, all your debt repayments are put on hold. The court also forbids all the debt collectors from touching the money that is in your bank account. The lawyer who is representing you in the debt and the person who you owe money have to agree on how you are going to pay back the money. Your situation is what will dictat whether you will have to repay the loan with a more manageable plan or your loan will be forgiven.
The debtor is relieved the burden of repaying the outstanding debt after being legally declared bankrupt by the court. The court has to be aware of where you are currently positioned financially before they declare you bankrupt. Your salary, all the investments, all the other debts and other assets have to be considered. With the bankruptcy, you can stop worrying about losing what you own.
If the court has legally declared you as bankrupt, you will be sure that your house will be safe. There are very many homeowners who have the misconception that bankruptcy will make them lose their assets including their homes. The court will not want to leave you in the streets so there is a possibility that you will still stay in your home. With bankruptcy, there is no possibility of losing your property. The lawyers and the creditor s will ensure that they find the best payment plan that will work for you.
The hassle of repaying the loan is keep away after filing bankruptcy. Requesting your creditors to put your loans on forbearance will make your monthly budget more manageable. However, with bankruptcy, the debt is cleared for good.
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