Declaring yourself bankrupt may be the last thing on your mind, but for some it is the only realistic way that they will ever become debt free.
If you are in debt you will know that it is not easy, having creditors pressuring you for some kind of payment, whilst you worry about how you plan to keep a roof over your head. It can damage your confidence, as well as your health.
Once you find yourself in a situation where you are struggling to pay back monies owed to your creditors, it is time to seriously consider bankruptcy. It is a big decision, and you should have all the facts available to you before you make it. So, if you want any advice on Bankruptcy in Joliet, you can find it here:
What are the advantages of going bankrupt?
If you choose to declare yourself bankrupt, do not worry, it no longer holds the same stigma as it used to. Declaring yourself bankrupt actually has a number of advantages, especially to your own peace of mind, health and assets.
Some of the advantages of declaring yourself bankrupt are:
No creditors to deal with: this takes the pressure and, on occasion, constant harassment from creditors away from you, leaving you to concentrate on other things.
Keep some assets: if you choose to declare yourself bankrupt you can keep certain household goods, allowing you to leave a little easier.
Chance for a fresh start: depending on your court order, you can plan for a fresh start relatively quickly.
Stop the creditors: once a bankruptcy order has been issued, creditors have to stop their own court action against you, giving you peace of mind.
Write off the debt: in some bankruptcy cases, the money you owe can be written off.
What are the disadvantages of going bankrupt?
Bankruptcy may seem an easy way out of repaying your debts but, in truth, it is not. When you are in debt, and you are considering bankruptcy as an option, this is, in the main, the last resort and for good reason too.
Some of the disadvantages of declaring yourself bankrupt are:
Upfront costs: some solicitors will charge you, when they assist in your bankruptcy order, and this is a cost you will normally have to pay upfront.
No credit: if you choose to declare yourself bankrupt, you will no longer be able to acquire any credit for the period of your bankruptcy court order.
Selling your belongings: if you have a number of assets that are worth ‘something’, then the court will order that these are to be sold.
Selling your home: again, if you own your home, then this may be sold to raise money for the creditors.
Working life: some bankruptcy orders may not allow you to work again, and this is usually applicable if the debt is from your own business.
There are many things that you need to consider, if you are thinking about declaring yourself bankrupt. You may require further advice, if so contact your nearest solicitors.