Declare Bankruptcy
Thousands of people declare bankruptcy every year so if you are considering it then you can rest assured that you’re not alone. Bankruptcy does tend to carry a stigma that the bankrupt individual is some sort of failure or done something terribly wrong. Don’t let this stop you when making your decision, it can be twice as bad to go on living day to day through the hell of harassing creditors and the immense stress insurmountable debt can cause.
No matter how or why you accumulated so much debt, to declare bankruptcy does not mean you are a failure. It means you’re willing to admit you can’t go on, you can’t find a way out of your problem and are indeed looking for a fresh start which is exactly what it will give you. Most people believe that giving someone a second chance to get something right is not only the kind thing to do but the right thing also.
So if you have tried without success to come up with a debt solution plan that your creditors are happy with but doesn’t leave you with zero then you might consider going bankrupt. There are serious consequences and you must seek advice from your local Government free information on exactly what their specific Bankruptcy Act details. It is common however for your credit score to be damaged for many years to come, with your Bankruptcy being listed with credit agencies for up to ten years in some cases. The thing is that if you continue down the path you’re on your credit score isn’t going to get any better probably anyway.
The Family Home And Bankruptcy
Asking for a fresh start and walking away from all your debts isn’t as easy as it sounds. If you own a house you could very well have it sold to ensure the people you owe money to can get any payments from your assets that you have at the time of bankruptcy. There will be various other assets too that can be seized from you and sold so the profits can be directed to your creditors. Don’t panic though, you aren’t stripped bare, that would not be giving someone a fresh start would it now. Check out the ‘fine print’ for your state or country and get informed so you know what you can and can’t keep.
Keeping the family home if you have one is most likely a priority and in that case there might be a way of keeping it and going bankrupt at the same time, depending on the equity in the home and many other factors. You really should speak to an experienced bankruptcy lawyer to be sure what risk your home will be at.
Many people are convinced to not declare full bankruptcy but to make an agreed payment plan with all the creditors which is set and cannot be changed, it will be manageable and fair. The thing to remember in this case is though that your credit score will be affected almost as much as if you declare bankruptcy and wipe the slate clean.
In any case, you really should seek out as much information as you can before making such a serious decision but don’t delay, make phone calls, get information from the appropriate Government bodies and talk to a lawyer. The sooner you do something the sooner you’ll make positive progress.