Filing for bankruptcy can be an extremely daunting task especially if you don’t know how to do it properly. However, we can tell you right now that you don’t need to be scared to ask for help with regards to this particular predicament.
Many agencies can help you with sound advice with regards to this issue. You just have to understand what you are getting into before getting the ball rolling. Here are some of the reasons why you should not be scared of asking for help regarding declaring yourself bankrupt.
Advantages of Declaring Yourself Bankrupt
Starting Over
By declaring yourself bankrupt, you will be able to start over with a clean slate. Creditors will have no choice but to stop asking you for payments. They will also not have any recourse when it comes to taking legal action against you to force you to pay up.
Dissolution of Debt
In addition to this, you will also have the opportunity to erase every payment that you owe any financial institution. This is why it can be considered as a clean start for some people.
Halting of All Contact
Because of this, you will not end up receiving any further contact from your creditors down the line. This is why it would be helpful for you to get legal advice regarding how to effectively declare bankruptcy.
The Main Disadvantages
A lot of government and non-government agencies can help you figure out what to do when it comes to declaring yourself bankrupt. You do not have to worry too much about it. However, there are also some setbacks when it comes to declaring yourself bankrupt.
Here they are as follows:
It Will Show Up on Your Financial Records
First, your declaration for bankruptcy will end up in your financial records for sure. If this happens, this may decrease the chances of getting a bank loan anytime soon.
The Bank Reserves the Right to Seize All Your Assets Upon Declaration
In addition to this, the bank may have the right to seize all your assets including your home and your car or any other property that you might have to pay off the debt in lieu of cash. In short, bankruptcy could leave you with nothing.
It Could Affect Your Employment Negatively
If you work in the financial or legal field, declaring yourself bankrupt can affect your status as an employee. This means that you can lose your job over it.
It Will Have A Negative Impact on Your Credit
Also, bankruptcy will have a negative impact on your credit. It will appear on your record for as long as six years. This means that you will not be eligible for any bank loans if you declare yourself bankrupt.
Why You Ought to Get Advice Anyway?
However, if you are able to seek legal advice regarding your finances and declaring yourself bankrupt, it will be far more advantageous because of the following reasons.
- Various legal and financial experts will be able to help you properly declare bankruptcy without difficulty.
- They will be able to also give you some advice on how to deal with the repercussions of your filing.
- In addition to this, they will be able to give you help regarding how to reduce the appearance of your bankruptcy particularly within your financial records.
Additional Information
By seeking professional advice, you will also get all the details regarding how to file for bankruptcy and some of the risks and benefits that you can have in doing so. This way, you will be more informed regarding bankruptcy prior to making your final decision.
The most important, if not helpful, benefit that you can get from seeking advice on bankruptcy is the fact that you will get reliable information. This way, you will be able to make the right decision in the long run.
The Conclusion
If you ever decide to seek advice regarding the advantages and pitfalls of bankruptcy as a declaration, you ought to make sure that you go to the right agency to do this. Fortunately for you, we at National Debt Advice UK can give you what you need and more.
All you have to do is to make sure that you visit the website on a regular basis so that we can provide you with all the information that you need to make the best decision for your own financial prosperity.
You will not regret your decision to work with us. We will help you out every step of the way for sure.