Filing Bankruptcy: The Positive And Negative Side
Are you in huge debt right now? Do you fear of having to face litigation from your creditors or loan agencies? If you think your credit case is a hopeless one and your only way out is to file for a bankruptcy to escape all these debt obligations, then, why not sit down for a while, clear your thoughts and take time reading the positive and negative side of this course of action—filing a bankruptcy status.
- Once you have decided to file for a bankruptcy, all your credit payment schedules will be put on-hold. Your creditors will also be advised to contact first your legal representative in cases they want to contact you, since they are already being reprimanded not to talk to you personally. The good thing about this action is that all your credit payments will be stopped and have to wait until the court decided what to do with your pending credit obligations.
- Filing a bankruptcy as your final debt solution would mean being cleared from most of your credit obligations that you need to pay. You don’t need to pay even a single cent if you resort to this debt solution alternative. There are also instances wherein a person who has filed a bankruptcy status has still rights to retain possession of his/her current assets to help him/her cope up with any present financial difficulties.
- Filing a bankruptcy could lead to a negative feedback to your overall credit ratings score even if you are now totally free from any credit payment obligations.
- In most reported cases of filed bankruptcy status, this bad credit record will have to stay and reflect your financial capability for a period of 10 years or depending on the rules and regulations being governed by your country’s bankruptcy law. This action will greatly affect any future borrowings you have in mind.
- Availing other loans instantly could be more complicated if you filed a bankruptcy status such as loans related to housing or car loans.
I do hope the above positive and negative side of filing a bankruptcy has helped you decide wisely what course of action to undertake as your final debt solution. People often think that filing a bankruptcy will make you totally debt-free, but remember by putting yourself to this kind of status would only lead to bad credit ratings in the end that you will eventually regret when you really need to ask the assistance of credit companies for some quick loans. If you are still undecided which action to take, better seek the expert advice of a legal credit representative who is more knowledgeable in this area. Take charge of your debts by choosing the right debt solution for your credit problems and be totally debt-free in the end.