Our society has made a culprit of bankruptcy so much so that many people feel like life will never be the same again once they declare themselves bankrupt. However, bankruptcy declaration may help you regain control over your finances and even prevent you from losing your assets. If you feel like you have too much debt, a good solution would be to consult with an experienced bankruptcy lawyer who can give you information concerning how to declare bankruptcy or other options to consider in your situation. It is better to start looking into your financial situations earlier instead of waiting because of the many stereotypes that are associated with being bankrupt.
How to determine where you are financially
Before you can go to a bankruptcy lawyer, you need to determine where you stand with your financials. In order to do these accurately, take an inventory of all your liquid assets including stocks, pensions, savings, real estate and so on then add your bills and credit card statements. If the value of your assets is much lower than the bills, you may need to consider filing for bankruptcy.
How to declare bankruptcy
Bankruptcy can be declared in two ways:
· Voluntary: This is where you decide to declare bankruptcy from your end with the help of your bankruptcy lawyer. In this case, it is advisable to look for professional legal advice before filing since once declared bankrupt; you will have to take dire measures to fix your financial status. Also, this may affect your credit score pretty negatively.
· Through Creditors: This is where the people you owe cash decide to ask a court to declare you bankrupt.
Why should you consider bankruptcy declaration?
Asset Protection: Depending on the type of bankruptcy you choose to file, your assets will be protected so that your creditors do not liquidate them if you had placed them as security for your loans. Many people who file for bankruptcy end up keeping most of their assets, especially their homes after filing for bankruptcy.
Freeze interest payments: As all loans are paid back with interest, the more time elapses, the more a debt accumulates. When you file for bankruptcy, you only pay the cash that is outstanding before filing preventing payment accumulation
Release from debt obligations: A person who has sought declaring bankruptcy help from a lawyer is guaranteed release from debt obligations once the grace period is over. Such a debtor is normally given a grace period within which he/she can make payments according to his/her ability. Once the period is over, the debts are written off regardless of whether they have been completed or not. However, payments such as alimony or child support need to continue being paid as one cannot be released from those.
Creditors stop calling you: Once you file for bankruptcy, collection agents stop calling since the law stipulates that they leave you alone, helping you to have less stress over your financial situation.
Filing for bankruptcy is not necessarily a bad thing. It may signify a fresh start for you, a new slate where you work to take charge of your finances.
Do you have anyone near you saying, “Help me declare bankrupt!” Contact the Debt Helpline for guidance on how to declare bankruptcy.