Why Bankruptcy is Worth Considering
Being in debt is the worst thing that could ever happen to you. Debt collectors will keep giving you countless calls. Your mailbox will also be filled with notices that are countless. All the money in your paycheck will be lost to loan repayments before you can even accomplish the things you had planned for. Catching up on late payments can be quite difficult. One major disadvantage of late loan payment is that it causes an increase in the loan. Declaring yourself bankrupt could help you if you are in such a situation. If you are bankrupt; it means that either you or the business cannot settle an outstanding debt. Filing bankruptcy has its pros and cons.
There are very many misconceptions about the process of 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. Bankruptcy pauses all the efforts made to for you pay the loan. The money in your bank account cannot be tampered with by any debt collectors. It is then the role of the creditors and the loan lawyer to come up with a plan that can help you in your financial situation. Your situation is what will dictat whether you will have to repay the loan with a more manageable plan or your loan will be forgiven.
The other benefit of filing for bankruptcy is that it provides relief from debt. The court has to gauge your financial position after you have requested to be declared bankrupt. This includes gauging your salary, investments, outstanding debts and other assets and liabilities that the person owns. Your financial position will be improved by the judgment made by the court.
If the court has legally declared you as bankrupt, you will be sure that your house will be safe. Most people have the fear of losing their homes and that is why they are hesitant about declaring bankruptcy. It is not the wish of the court to leave you homeless and loaded with many debts and therefore they will ensure that you retain 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.
With bankruptcy, you do not have to worry anymore about the loan. In the case of forbearance, you will have to pay back your loan after some time. However, with bankruptcy, the debt is cleared for good.