Is bankruptcy an option for you?
Bankruptcy used to be something of a dirty word; a last resort which smacked of desperation and something that should be avoided at all cost. Not any more, however. Whether it is a sign of these harsh economic times or a more open-minded attitude to debt management, filing for bankruptcy is on the rise. Payday loan firm Cash Until Friday (http://www.cashuntilfriday.co.uk/) looks at bankruptcy to help you decide whether it could be an option for you.
There’s no denying that even in this day and age bankruptcy is an extreme form of debt management (far more life-changing than taking out pay day loans), given that your possessions, home and income are all used to pay off your debts. Anyone who files for bankruptcy has to agree to certain restrictions which will affect their finances and their lifestyle, and of course they have to accept that their full financial affairs will be looked into in great detail. However, if you are happy to agree to those terms, then in time all of your debts are cleared.
Individuals as well as companies can apply for bankruptcy by applying to a court which deals with bankruptcy. It will be this court which will issue your bankruptcy order. While the order is going through, you will hand over all assets of value over to a trustee who will be managing your bankruptcy. This trustee is an office of the bankruptcy court at first and once the process is further along an authorised debt specialist will be appointed to you by the court.
It is vital that you understand the restrictions which will be imposed upon you once you are made bankrupt. First, you agree to co-operate with all actions and decisions of your trustee; then you agree to handing over any valuable assets to the court via your trustee, including your bank and credit cards; and finally you must agree not to make payments to any creditors listed in your bankruptcy order separate to the court proceedings.
It is also important that you understand the ramifications of being made bankrupt. Not only do you have to hand over all of your assets, including your home which could mean losing any financial interest in your property, but your bank will freeze your accounts and may not allow you to open new ones. (And remember, if you don’t have a bank account with a valid debit card, you cannot apply for a Cash Until Friday pay day loan.) You may subsequently find it hard to get credit for the six years that a bankruptcy is kept on record, and key financial figures in your life will be notified of your bankruptcy, from your landlord to your insurance company. It is also likely to mean the closure of your business if applicable, or affect your working situation. Not all employers are sympathetic to bankruptcy and some roles do not allow it, such as a solicitor or a trustee of a charity.
So, as you can see, bankruptcy is not something to be taken lightly as it affects a great many areas of your life for at least the six years it is kept on record. However, for some it is a lifeline when less affecting debt management methods such as quick payday loans are not enough. If your financial troubles are less pressing and you’re looking for a short-term solution, however, find out more about payday loans online at http://www.cashuntilfriday.co.uk/.
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