Bankruptcy - Losing Financial Control
Whenever you start feeling that your financial control is spinning out of control it is time you think of the option to choose for bankruptcy.
The normal signals for this will be increasing credit card dues, missing the payment dates for your mortgages, your creditors have obtained garnishment against your paycheck and your net take home pay reduces.
Filing for bankruptcy has been considered a stigma for a variety of reasons including job losses.
Infact, this is not the case.
Used judiciously, it can be used to restart your financial rebalancing once again.
On most occasions due to mounting debt, there are situations when the collection agents / creditors start to follow up either through written communication or by reaching you on your mobile / telephone.
If you are not accessible they end up even reaching your relatives or friends which is not a very nice thing to experience.
To put a stop to this, one can certainly file for bankruptcy under Chapter 7 or Chapter 13.
This will immediately put a stop to all the proceedings that are going on against you including any judgment received or a right of repossession of your property.
The biggest benefit is that the financial assets continue to remain and you can start a fresh.
There are certain caveats though.
The filing for bankruptcy is not an end in itself.
It is a means to an end.
That said there are certain exclusions which will not be eligible for benefit even if you file for bankruptcy and they are - alimony payments, government taxes and levies.
Similarly and fines that are to be paid due to intentional malicious acts will be excluded.
Also, if you want to find a new job it may be an uphill task to get a new job till your credit history improves.
Lastly, if you miss providing the name of any creditor in your bankruptcy filing then that creditor has the right to pursue recovering his dues in the normal course of law.
So it is essential that the list of creditors is drawn correctly.
Finally, it is better to take control rather than let other take control of your finances.
The normal signals for this will be increasing credit card dues, missing the payment dates for your mortgages, your creditors have obtained garnishment against your paycheck and your net take home pay reduces.
Filing for bankruptcy has been considered a stigma for a variety of reasons including job losses.
Infact, this is not the case.
Used judiciously, it can be used to restart your financial rebalancing once again.
On most occasions due to mounting debt, there are situations when the collection agents / creditors start to follow up either through written communication or by reaching you on your mobile / telephone.
If you are not accessible they end up even reaching your relatives or friends which is not a very nice thing to experience.
To put a stop to this, one can certainly file for bankruptcy under Chapter 7 or Chapter 13.
This will immediately put a stop to all the proceedings that are going on against you including any judgment received or a right of repossession of your property.
The biggest benefit is that the financial assets continue to remain and you can start a fresh.
There are certain caveats though.
The filing for bankruptcy is not an end in itself.
It is a means to an end.
That said there are certain exclusions which will not be eligible for benefit even if you file for bankruptcy and they are - alimony payments, government taxes and levies.
Similarly and fines that are to be paid due to intentional malicious acts will be excluded.
Also, if you want to find a new job it may be an uphill task to get a new job till your credit history improves.
Lastly, if you miss providing the name of any creditor in your bankruptcy filing then that creditor has the right to pursue recovering his dues in the normal course of law.
So it is essential that the list of creditors is drawn correctly.
Finally, it is better to take control rather than let other take control of your finances.
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