The Harsh Realities About the Impact of Personal Bankruptcy
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patrick
While many do not know this prior to making their decision to file for bankruptcy, a discharged bankruptcy comes with serious consequences in both your personal and professional life.
For many, personal bankruptcy is often a "last resort," driven partly by harassing demands of credit and debt collection companies. Although bankruptcy might seem like a quick and easy fix to the harassing calls and sleepless nights, one must never rush into making such a decision. While filing for bankruptcy can momentarily end the consequences of your financial condition, almost all others who have gone bankrupt admit that it was one of the biggest mistakes they ever made.
The impact of personal bankruptcy can have serious effects on your current and future financial position. Let us see how:
Since bankruptcy is essentially a liquidation of assets, filing for bankruptcy puts your assets at risk. This includes properties, shares, personal valuables. These items can be sold by the trustee to settle outstanding debts.
Bankruptcy might not only put current assets at risk, but future assets as well. In the case of an inheritance, creditors may also have a claim against such funds in order to settle their debt.
In addition to the sale of assets, the impact of personal bankruptcy includes harmful records on your credit bureau. Bankruptcy will impact your intentions to act as a company director and obtain non-personal credit for the rest of your life.
Perhaps the worst impact of personal bankruptcy comes after the bankruptcy order is advertised locally. This damages the reputation of an individual's name and personal business dealings. Unlike companies, individual debtors cannot trade under a different name. So for the debtor who has declared bankruptcy in the past, all of this information is available in the public domain.
What is likely the harshest impact of personal bankruptcy is something that comes after the bankruptcy notice is advertised. Given the public nature of bankruptcy, the debtor's name and personal business dealings are in jeopardy. Unlike companies who can operate under different trade names, individuals have just one name. And since bankruptcy are publicly available, anyone can access the details of your bankruptcy.
Lastly, a personal bankruptcy will affect your reputation. Since the bankruptcy proceedings are very public with your financial affairs being examined in open courts, the experience will not only increase your stress levels, but can be particularly humiliating.
On top of all of this, a personal bankruptcy will have even more of a financial impact given the court costs and processing fees that come with filing.
If you are considering bankruptcy as a debt clearance option, then try gaining some knowledge about other alternatives. For more information on the impact of personal bankruptcy and its alternatives refer to e-books and manuals available on the net.
For many, personal bankruptcy is often a "last resort," driven partly by harassing demands of credit and debt collection companies. Although bankruptcy might seem like a quick and easy fix to the harassing calls and sleepless nights, one must never rush into making such a decision. While filing for bankruptcy can momentarily end the consequences of your financial condition, almost all others who have gone bankrupt admit that it was one of the biggest mistakes they ever made.
The impact of personal bankruptcy can have serious effects on your current and future financial position. Let us see how:
Since bankruptcy is essentially a liquidation of assets, filing for bankruptcy puts your assets at risk. This includes properties, shares, personal valuables. These items can be sold by the trustee to settle outstanding debts.
Bankruptcy might not only put current assets at risk, but future assets as well. In the case of an inheritance, creditors may also have a claim against such funds in order to settle their debt.
In addition to the sale of assets, the impact of personal bankruptcy includes harmful records on your credit bureau. Bankruptcy will impact your intentions to act as a company director and obtain non-personal credit for the rest of your life.
Perhaps the worst impact of personal bankruptcy comes after the bankruptcy order is advertised locally. This damages the reputation of an individual's name and personal business dealings. Unlike companies, individual debtors cannot trade under a different name. So for the debtor who has declared bankruptcy in the past, all of this information is available in the public domain.
What is likely the harshest impact of personal bankruptcy is something that comes after the bankruptcy notice is advertised. Given the public nature of bankruptcy, the debtor's name and personal business dealings are in jeopardy. Unlike companies who can operate under different trade names, individuals have just one name. And since bankruptcy are publicly available, anyone can access the details of your bankruptcy.
Lastly, a personal bankruptcy will affect your reputation. Since the bankruptcy proceedings are very public with your financial affairs being examined in open courts, the experience will not only increase your stress levels, but can be particularly humiliating.
On top of all of this, a personal bankruptcy will have even more of a financial impact given the court costs and processing fees that come with filing.
If you are considering bankruptcy as a debt clearance option, then try gaining some knowledge about other alternatives. For more information on the impact of personal bankruptcy and its alternatives refer to e-books and manuals available on the net.
About the Author:
Chris Blanchet is the author of the Personal Finance e-book Help Fix My Finances, which also serves as the premise for the Members Only website of the same name. His blog can be found at How To Repay Debt.
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