Considerations Before You Apply For Bankruptcy
Many individuals consider bankruptcy as a simple way to remove a massive debt burden, and it's often the first thing people consider when struggling financially. Whilst it could well help with a bad financial situation, it's not always straightforward and should be seen as final option.
While legally it is relatively straightforward in the UK to actually file for bankruptcy, the steps, as with any legal case, can be far from painless.
You'll have to justify your application, showing all your credit history to a judge and exposing it to objections by creditors. If you owe them a lot of money, they are not likely to settle easily with minimal repayment offers.
Even if you're successful, there are various impacts that you'll need to review before taking such drastic action.
You will surrender any credit cards that have money owing and others will more than likely close your account. You'll additionally find it near impossible to acquire a mortgage or other large secured loans. Depending on your family situation, it is possible that you may even lose your home.
Not every debt is covered by a bankruptcy filing. You need to check details thoroughly as many loans, taxes and some other debts can be exempt from bankruptcy protection.
Even after you fulfilled the official time period for bankruptcy, you could still find that your financial record is poor and obtaining any credit in the future may be almost impossible. Of course, this may well be a positive thing in the long run!
As you won't have access to new credit cards, this can actually be a blessing. Unfortunately, there are some people who simply should not be able to obtain easy credit, until they can improve their personal financial management.
Beyond the credit impact, you may actually be required to relinquish assets, for example jewellery, valuable furniture or even your car.
Lastly, the bankruptcy procedure itself is not free. Courts incur costs and, if you use a legal professional, that will also add additional charges.
On the upside, you will get relief from debt collectors (assuming they receive notification) and any foreclosure action will be stopped. By taking action sooner rather than later, you will start to rebuild your credit history that can be advantageous in the long run.
It can serve as a huge wakeup call to improve any bad money management habits. For some, it is necessary to hit rock bottom before finding the required discipline to make long term plans however, as this can be hard, you should, think cautiously and obtain expert advice prior to committing to action.
Related Tags: debt, help, options, bankruptcy, uk, trapped, bankrupt, consider
Derek Rogers represents Protected, a UK based life insurance site providing individuals with the choice of over 100 life insurance plans online. Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Beginning of the Cataloging Code
The first significant cataloging code was published in 1841. The realization that cooperation and s - In the Lap of the Gods 24
Life moved on. Lily became well liked by both students and staff because of her cheerful outlook on - In the Lap of the Gods 23
Does fate decide the future? Is it all mapped out for us, predestined, or can we influence what com - Write Your Memoir: How to Write About What Troubles You the Most
Everyone has a story to tell, and unfortunately those stories aren't always pleasant. What makes me - How Crafty Word Order Can Instantly Improve Your Writing
by Philip Yaffe I am usually very reticent about offering writing tips. Unless they are linked to - You Say Grandpa, I Say Deda
I was born with two grandmothers but only one grandfather. In nature's rules of familial supply and - My Russian American Dichotomy
I was a Russian girl and an American teenager. I had no choice about the first but I tried very har - In the Lap of the Gods 22
This is just an explanation for those who have read some of the other Chapters of, "In the Lap of t - Write a Book: 8 Reasons You Should Do it
Studies have shown that 82% of people want to write a book, but few of these actually ever achieve - Book Review: the Book of Common Prayer
Book Review: The Book of Common Prayer, "My carry-with-me copy is this size, and I recommend it for
Most viewed articles in this category:
- Real Estate Investment - Investing In Commercial Properties
As in any other type of investment, its obviously advisable to do your research well so that the pro - Taking Care Of Acne Prone Skin With Proper Skin Care Products
Although acne has been largely associated with teeners and puberty, the condition is not only confin - Do I Really Need Eight Hours Of Sleep Each Night?
What if you were told that there is no definitive answer for why we need to sleep? Your initial reac - How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of c - 10 Tips for a Magnificent Memory
"Where did I leave my keys?" "What did I come in here for?" "Your glasses are on top of your head!" - Things You Might Like To Know About Card Companies
If you have a regular income and are 18 or over then you may be able to get a credit card. You will - Bad Breath in Babies and Toddlers
If your baby or toddler has had bad breath lately, not to worry. There are plenty of things you can - Starving College Students No More
The majority of today's college students are extremely Internet savvy. In fact, many of those studen - Cosmetic Surgery Financing: How Can You Get It?
Cosmetic surgery, a branch of plastic surgery, can be quite expensive, especially if you are plannin - Article Marketing, Improve Your Ranking With Links
Article Marketing, without a doubt remains the best free formula for attracting website traffic. At
