Bankruptcy has been used by many people to manage their debt.
Bankruptcy has both positive benefits and negative aspects to it.
You should be aware of what are the potential negative aspects of bankruptcy if you are considering becoming a bankrupt.
Bankruptcy is not a get out of jail free card where you do not have to pay anything.
Often assets will be required to pay back debts that bankruptcy does not cover.
These can be where bankruptcies still require of taxes owed to the IRS and where an asset has been used as a guarantee for a loan.
Bankruptcy does still contain a stigma that may affect your relationships with your family members and other close friends.
This stigma you cannot control because it is based on the other persons values, not yours.
In any event like all relationships this could cause you to lose close friends and closeness to family members.
Another problem is that these family members or close friends could be caught up in the bankruptcy proceedings, if they are required to return money or other assets you have loaned to them in the previous 12 months.
This may have dire consequences to them that can change their life.
In seeking employment it might be difficult to find a good job, particularly if your specialization is in the financial sector.
Whilst organisations are not allowed to discriminate against bankrupts, it doesn't mean they have to employ you.
They have plenty of ways to show that they didn't discriminate against you when in fact they have.
Your credit file will certainly be affected by your bankruptcy.
This will be flashing up in neon lights when the next prospective lender reviews your file.
As you will be debt free when you emerge from bankruptcy, take the opportunity to rebuild your credit profile as you would have done when you were young and didn't have a credit history.
Start with small loans first, paying them out on time and in full, and build up a profile of being a good credit risk.
Before you know it you have a new discipline and a track record that credit lenders will want to do business with you.
If you decide that bankruptcy is the method you need to use to manage your current financial situation, learn from the experience of how you got into this situation and ensure those lessons are well learnt and acted on for your financial future.
Bankruptcy has both positive benefits and negative aspects to it.
You should be aware of what are the potential negative aspects of bankruptcy if you are considering becoming a bankrupt.
Bankruptcy is not a get out of jail free card where you do not have to pay anything.
Often assets will be required to pay back debts that bankruptcy does not cover.
These can be where bankruptcies still require of taxes owed to the IRS and where an asset has been used as a guarantee for a loan.
Bankruptcy does still contain a stigma that may affect your relationships with your family members and other close friends.
This stigma you cannot control because it is based on the other persons values, not yours.
In any event like all relationships this could cause you to lose close friends and closeness to family members.
Another problem is that these family members or close friends could be caught up in the bankruptcy proceedings, if they are required to return money or other assets you have loaned to them in the previous 12 months.
This may have dire consequences to them that can change their life.
In seeking employment it might be difficult to find a good job, particularly if your specialization is in the financial sector.
Whilst organisations are not allowed to discriminate against bankrupts, it doesn't mean they have to employ you.
They have plenty of ways to show that they didn't discriminate against you when in fact they have.
Your credit file will certainly be affected by your bankruptcy.
This will be flashing up in neon lights when the next prospective lender reviews your file.
As you will be debt free when you emerge from bankruptcy, take the opportunity to rebuild your credit profile as you would have done when you were young and didn't have a credit history.
Start with small loans first, paying them out on time and in full, and build up a profile of being a good credit risk.
Before you know it you have a new discipline and a track record that credit lenders will want to do business with you.
If you decide that bankruptcy is the method you need to use to manage your current financial situation, learn from the experience of how you got into this situation and ensure those lessons are well learnt and acted on for your financial future.