| |
| |
|
WebsiteAlways |
|
Benefits and Drawbacks of Bankruptcy
Outlined below are some of the benefits and drawbacks of bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice. There is more to bankruptcy than as a way of finally putting an end to harassing debt collectors and creditors. One big side effect of bankruptcy being that your life is likely to be subjected to intense scrutiny. These are some of the benefits of bankruptcy: Relieves the stress caused by dealing with numerous creditors. Once a bankruptcy order is made, a third party takes over the administration, decision making and payment process of the debts. Creditors forced to recognise that they must accept less money than is owed. Debtors typically pay less with a bankruptcy order than with an Individual Voluntary Arrangement. Once discharged, most debts are written off and creditors cannot pursue them. Here are some of the drawbacks associated with bankruptcy: The debtor will lose any realisable assets of value. If the debtor owns equity in a home, this will almost certainly be sold. If a business is owned, this could be sold and any employees dismissed. Bank current accounts can be difficult to obtain. It is a costly process. All fees for the insolvency service, courts and any trustee are taken out of the debtor's assets. If trying to obtain credit of more than £250 the debtor must disclose his status as an undischarged bankrupt. The debtor must allow all his financial affairs to be scrutinised. Names of those made bankrupt are published in the London Gazette and the local press and can be viewed online at the Insolvency Service website, making them accessible to anyone in the world. Cannot hold certain public offices, such as MP, councillor or magistrate, or practice certain professions, such as solicitor and accountant. A bankrupt may not hold office as a trustee of a charity or a pension fund. A bankrupt is not allowed to be a company director or trade under any other name than the one used at the time of bankruptcy. The trustee must be informed of any changes in circumstances during the bankruptcy. Certain debts cannot be written off: fines, maintenance/child support payments, other family court orders, debts to secured creditors, debts from personal injury claims, debts incurred through fraud, debt arising from certain other orders of the criminal court. Bankruptcy does not affect the rights of secured creditors. Where there are joint debts, creditors can still pursue the non-bankrupt debtor. Bankrupts found to be blameworthy, culpable or dishonest can be made subject to a Bankruptcy Restrictions Order which can impose the same bankruptcy restrictions, plus some additional ones, for anywhere from 2 to 15 years. You may freely reprint this article provided the author's biography remains intact: About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
MORE RESOURCES:
Debt-Relief - Google News |
|
|
|
RELATED ARTICLES
How To Pay Credit Card Debt Off If you are determined to pay credit card debt off you are making the best financial decision of your life. The reason credit card debt is so bad is because it carries such a high interest rate. Bankruptcy As An Option If your financial worries are preventing you from sleeping at night, then you may have considered bankruptcy in hope of a little relief. Usually, consumers only turn to bankruptcy if there is no other hope for them to get out of debt. What Is A Chapter 13 Bankruptcy? Many consumers that are bogged down in debt frequently turn to bankruptcy as a form of restoring their financial status back to a zero balance. Unfortunately many of these same consumers are confused when it comes to the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy. Solutions to Single Mothers in Debt As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap. Mr. Cheapies Frugal Budget Tips So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the price of hamster wheels jumps!Mr. Tips For Saving Money Still living from pay to pay? Or envying those great wealth accumulators and wondering how they did it? Every month you make a resolution of saving some dollars from your paycheck, but only end up breaking it. Looking for some magic formula for saving money?Well, there’s no magic formula—only some simple rules to be followed with determination and persistence. Debt Elimination If you're reading this article right now I'm sure that you are looking for a debt elimination system that will help you get out from under you personal mountain of debt. Hopefully you're not looking for the magic pill that will suddenly dissolve your debt problem. Debt and Your Dreams You may not realize what that credit card bill is doing to you?Bob is a 27 year old truck driver. He dropped out of college after one year and got a job. Life After Debt - Strategies for Dealing with Problem Debt Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling.The inability to reduce debt and saving money are the two biggest obstacles preventing Americans from living financially sound lives. Bankruptcy: Which Chapter Do I File? There is more than one kind of bankruptcy. You should understand your options before deciding which chapter of bankruptcy you are going to file for, or if you are going to file for bankruptcy at all. What is Bankruptcy? Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice. Craving For Financial Freedom Have you ever felt trapped in a Rat Race and wished to retire quickly but rich?Have you ever felt that you are spending way too much time working with your boss at your office instead of with those you love? Your spouse, children, friends?Have you ever felt frustrated because you are so deep in debt that you think you won't be able to retire because as soon as you do, the money will stop coming and thus you won't be able to pay off your mortgages and credit card?Have you ever felt that you have no control over your life anymore in terms of time? Think about it: can you take a vacation just anytime whenever you want/ need it and as long as you want/ need it?Have you ever wished that you can work whenever you want and wherever you want?You are not the only one!Too many people are trapped in a Rat Race because they have to. There are too many bills to pay, and too many dreams to fulfill. Credit Repair - Understanding The Basics What is Credit?Credit means that you are using someone else's money to pay for things. It also means that you are making a promise to repay the money to the person or company that loaned you the money. The 5 Secrets to Getting Out of Debt Fast As they stare down at a teetering pile of bills, so many consumers wonder how they racked up such a large debt. The answer boils down to simple mathematics. Five Major Ways to Save Money There are two main roads to improving your personal finances: increasing income, and cutting costs.Increasing income is the harder road to travel. 4 Simple Ways to Solve Your Debt Burden Getting Behind Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road. Debt: Dont Pay Your Minimum Balance Almost all Americans carry credit card debt. Actually, over 40% of US families spend more than they earn. How to Negotiate Debt Settlements Knowing how to negotiate debt settlements is the key to securing your financial future. Debt negotiation is the process where in you will contact your creditors and will appeal to them with an offer to pay off the amount you owe in easier installments that decrease the principal quicker. Bankruptcy: What the New Law Means to You On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives. Establish Money Saving Goals For Added Success Having something tangible to strive towards can work wonders for your money-saving efforts. To those of you that have already been actively implementing money-saving tips in order to lower your monthly bills, for added inspiration, establish a meaningful goal along with a specific dollar amount.
|
| Interesting articles | Home | site map | Link |
| © 2006 |