Bankruptcy can help you get rid of the debt that would take years to clear otherwise. However, it can have serious implications for your future and you should be well informed before you make any decision about it. There are many things to consider when it comes to this topic, and if you still wonder if you should file for bankruptcy, you should keep reading.
Short description of bankruptcy
Bankruptcy, as it has been said, can be a good method to get rid of your debts, but you should consider the implication of this fact as well. Among the benefits of filing for bankruptcy is the quickness of the process and how you can give yourself a fresh new start, the unsecured debts being written off and receiving no further contact from the creditors. However, there are things to consider as well. For example, if you have any valuable assets, you must know that these will be included in your bankruptcy. Also, filing for bankruptcy can have implications on your job, as you will not be able to act as a company director. In addition, it will be difficult for you to take a credit in the next six years.
Implications of bankruptcy
When filing for bankruptcy, you will be put in a very delicate position. Either you or your creditors can apply to bankruptcy, and this happens when you are unable to pay your debts. When you are made bankrupt your assets may used to pay your debts, you must follow some rules called restrictions, and you are also discharged after 12 months. There are ups and downs to bankruptcy and is only your choice if you file for it or not.
How to apply for bankruptcy?
If you decided to apply for bankruptcy, you will need some legal forms that should be completed before you go to the court to petition for the bankruptcy. These forms may be picked up from the court, downloaded or sent to you.
What happens next?
After you file for bankruptcy, you will be called in court. You should dress smart and respectful but still comfortable. You will only be called in to confirm the completion of the firm and clear up any ambiguity, and then you will be registered as a bankrupt. After that, all the things discussed below will apply to you as an individual person and you will be free of all debts.