Bankruptcy, Solution or Problem?
- Author David Ayala
- Published August 9, 2013
- Word count 510
Bankruptcy is a legal resource involving a person or business which is unable to comply with the obligation to repay outstanding debts. In general this procedure is designed to grant the debtor a new beginning. The government has legally provided the right to file bankruptcy to those who really need it. However, filing for bankruptcy is not always an easy procedure, and you may not be aware of all the pros and cons.
Chapter 7 - is known as for liquidation , offers the opportunity to start all over. However, not all debts are eliminated, some mortgages as well as liens are not considered.
Chapter 11 - this one is the resource considered by large businesses in order to reorganize their debts to be able to continue operating.
Chapter 13 - through this procedure the debtor is committed to settle all or some of his debts during a period of time considered from three to five years.
In most states, bankruptcy is issued by a court order, It is usually the debtor who initiates the process filing an application. In some of the cases the court issues the order for liquidation procedure whether it be an insolvent business or individual.
Making a decision to file for bankruptcy is a very delicate one. It requires professional advice and great determination. You need to find out whether this alternative is the right one to take as the solution for your financial situation.
You need to be aware of other consequences when taking this option. One thing you need to consider, is that this record will remain on the credit report for ten years.
The laws have been changing, making some of the procedures more complex, it is very important that before making any decisions you thoroughly understand the benefits and disadvantages involved when you decide to go through this procedure.
Bankruptcy is not always the best solution, however, neither is exhausting your hard earned money to pay constant high interest payments, which is somehow worse. This decision could adversely affect your credit and future ability to acquire credit for other important things such as a house or an automobile.
You can be looking for a job, and your potential employer may run a credit check on you, and disregard your application based on your credit record.
A decision like this one, should be the last option to be consider. We should be proactive and exhaust every other possible alternative instead. There are ways of educating ourselves to be able to manage our personal finances in a more efficient way. We should not be slaves of a system designed to draw the last cent of your hard earned money.
With the proper knowledge and self discipline, you will be able to make better financial decisions and gain peace of mind. There are ways to achieve financial goals without ruining our credit. Just be willing to take your step and prepare yourself in order to handle every situation in a wise manner, seek the necessary wisdom, and you will see your situation turn around toward a brighter future.
Take action now, be proactive, it is never too late to turn your financial situation around. Feel free to visit our site http://christiandebts.illuminativeinfo.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Fintechzoom IBM Stock: Powerful!
- Building a Professional Website on a Budget: Using Free Tools like WordPress and AI
- Navigating Vietnam's Tourist Immigration: Challenges and Solutions
- Bitcoin FintechZoom
- Google SEO Updates 2024 Jackyan
- Cost-Effective Gardening: Tips for Enhancing Your Garden on a Budget
- Steve Wozniak: WOZ
- Keeping Your Garage Door Running Smoothly: A Guide to Drum Replacement with GarageDoorMagnolia
- When Your Garage Door Goes Rogue: Off-Track Repair in Tacoma and Seattle
- Same Day Service? Kiki Garage Door Repairs Your Garage Door Fast in Sammamish, WA
- Cost-Effective Strategies for Business Owners in 2024: Maintaining Efficiency Without Reducing Staff
- Navigating Compliance for Personal and Professional Contributions
- Smart Savings: The Benefits of Buying Out of Season
- Youtube To MP3 Converter -- Free
- The Benefits of Outdoor Training
- A Fashionable, Artistic, and Modern Adventure: Three Days in Paris
- Why buy stock footage on mediaCastpro? Here are the benefits.
- GoPDF An Online PDF Editor Releases Mobiles Apps Compatible with iOS & Android: A Faster Solution for PDF Editing
- The Best AI Logo Generators in 2024
- How to prepare for a house clearance, a few tips from experts
- Adapting to Rising Parcel Rates in 2024 with Business Central and Order Ship Express
- Not All LED Lights Are Created Equal
- Zoviz Launches New Solutions Day by Day to Users as An AI Logo Maker
- Campervan Maintenance: All You Need to Know
- Fighting the Silent Epidemic: Safeguard Your Child's Future with Vitamin D Screening at KinderCure | Dr. Garima Mengi
- 5 Inspiring Stories of Women Who Achieved Gorgeous Lashes with Careprost Eye Drops
- Is Your Finance Strategy Ready for ERP Software?
- A Beginner's Guide to Starting a Career in Web3
- The Vital Role Of The Courier Industry: Connecting People, Businesses, And Communities
- Learning From Successes And Setbacks: The Importance Of Post-Bid Analysis In Professional Bid Writing