The Good Side of Bankruptcy
Being in debt is the worst thing that could ever happen to you. The person who is responsible for collecting the money will give you countless warnings. The number of final notices you receive from the debt collectors will also be countless. The salary you are supposed to spend on treating yourself with some snack is all used up in the loan repayment. You have to expect some penalties if you do not repay the loan on time. If you fail to pay the loan on time, the interest on the loan keeps increasing. Bankruptcy could save a person who is caught up in such a tough situation. If you are bankrupt; you are legally announced to be unable to repay a certain loan. Filing bankruptcy has its pros and cons.
There are very many misconceptions about the process of bankruptcy. There are those people who think that bankruptcy will wipe all their debts way while others think that bankruptcy will make them lose everything they have. The fact that beats all these misconceptions is that you stop repaying your debts after the court has declared you bankrupt. The court also forbids all the debt collectors from touching the money that is in your bank account. Your lawyers have to come to an agreement with your creditors concerning your debts. 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.
With bankruptcy, you do not have to think about the debt anymore. The court has to gauge your financial position after you have requested to be declared bankrupt. Your salary, all the investments, all the other debts and other assets have to be considered. The court’s ruling will place you in a better and more comfortable financial position.
If the court has legally declared you as bankrupt, you will be sure that your house will be safe. There are very many homeowners who have the misconception that bankruptcy will make them lose their assets including their homes. The court has to take care of you by ensuring that you still stay with your home. According to Stone Law Firm Chapter 13 Bankruptcy will help you retain your house even after the declaration of the bank. The loan lawyers and creditors are left with the responsibility of looking for a loan repayment plan that you are more comfortable with.
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, before making any decision, seek advice from an expert to determine whether bankruptcy is the right choice for you.