Why Bankruptcy is Worth Considering
Being in debt is the worst thing that could ever happen to you. One bad thing that happens is that you receive many calls from the debt collectors. They will also keep giving you final notices via your mailbox. Another thing is that all the money that you get paid for your job will all be spent to repay your debts before you do anything reasonable. It is also quite expensive to deal with late loan payments. One major disadvantage of late loan payment is that it causes an increase in the loan. If you are in such a situation, you could consider filing for bankruptcy. If you are bankrupt; you are legally announced to be unable to repay a certain loan. Filing bankruptcy has its pros and cons.
Different people have different views about bankruptcy. There are those people who assume that their outstanding loans and debts will be cleared off by declaring themselves bankrupt, while other fear bankruptcy because they think that it will take away all their assets. The fact that beats all these misconceptions is that you stop repaying your debts after the court has declared you bankrupt. The money in your bank account cannot be tampered with by any debt collectors. Your lawyers have to come to an agreement with your creditors concerning your debts. There are two major options; throwing away the loan or deciding on a more comfortable method that can help the debtor repay the outstanding debt.
The other benefit of filing for bankruptcy is that it provides relief from debt. The court has to be aware of where you are currently positioned financially before they declare you bankrupt. This includes gauging your salary, investments, outstanding debts and other assets and liabilities that the person owns. The court’s ruling will place you in a better and more comfortable financial position.
The protection of your home in case you owe someone some money will only be ensured by declaring yourself bankrupt. There is a belief that declaring yourself bankrupt will force you to part with your home. The court has to take care of you by ensuring that you still stay with your home. According to Stone Law Firm Chapter 13 Bankruptcy will help you retain your house even after the declaration of the bank. 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. If you are in a huge debt, filing for bankruptcy can be just what you need.