What Does Bankruptcy Mean?
Bankruptcy means the individual or institution is unable to repay the loan taken within the time frame.
It is a legal notification by the individual or an organization to its creditors that they are unable to pay their debt.
This does not mean that they are totally broke but this refers to the large loans that they are unable to repay on the given period of time.
This filing and opting for bankruptcy will allow the borrower to accept and declare that he is unable to repay the amount taken from lenders.
Here the creditors have the right to file bankruptcy petition against the debtor to recover most of the debt.
By declaring this the individual gets time from the law to arrange for and declare his assets.
By declaring bankruptcy the borrower can go through all their available properties, investments and other salable assets and find out the total value of these for repaying the loan.
Even vehicles owned by the debtor are included for recovering the debt.
They can themselves do financial planning and rearranging or hire a professional financial planning consultant.
Here even taking advice from a lawyer helps to understand the position of the debtor.
As declaring bankruptcy means lots of damage to the image and reputation of the debtor it must be considered as a last resort only.
One can also ask for some time from the creditors or court of law to arrange for funds before making this final decision to file for bankruptcy.
They can also opt for bankruptcy loans which many financial institutions offer considering your age, qualification, position at job, and other financial assets.
Some creditors also set up a trust or managing committee to take charge of the assets and finances of the debtor.
The individual or organization who is declared bankrupt ceases to have right of control over finances.
They have to declare all their financial dealings and the creditor will try to recover as much loan amount from that as is possible.
This amounts to a lot of disadvantages as the debtor and borrower gets a very bad financial record.
Their credit rating drops and they can no longer apply for a fresh loan for at least minimum of two years.
Also this bad credit rating remains on your credit record for the next ten years.
What then if you need a home loan? This does not mean that you will not get a new home loan.
There are some financial institutions that are willing to lend mortgage loans in such cases.
Here the lender can assess the property owned by the borrower and offer the amount they can safely recover from selling the asset.
So filing bankruptcy must be the last resort and one can also opt for Bankruptcy Loans which are offered by some institutions to come out of financial crunch and repay the loans.
It is a legal notification by the individual or an organization to its creditors that they are unable to pay their debt.
This does not mean that they are totally broke but this refers to the large loans that they are unable to repay on the given period of time.
This filing and opting for bankruptcy will allow the borrower to accept and declare that he is unable to repay the amount taken from lenders.
Here the creditors have the right to file bankruptcy petition against the debtor to recover most of the debt.
By declaring this the individual gets time from the law to arrange for and declare his assets.
By declaring bankruptcy the borrower can go through all their available properties, investments and other salable assets and find out the total value of these for repaying the loan.
Even vehicles owned by the debtor are included for recovering the debt.
They can themselves do financial planning and rearranging or hire a professional financial planning consultant.
Here even taking advice from a lawyer helps to understand the position of the debtor.
As declaring bankruptcy means lots of damage to the image and reputation of the debtor it must be considered as a last resort only.
One can also ask for some time from the creditors or court of law to arrange for funds before making this final decision to file for bankruptcy.
They can also opt for bankruptcy loans which many financial institutions offer considering your age, qualification, position at job, and other financial assets.
Some creditors also set up a trust or managing committee to take charge of the assets and finances of the debtor.
The individual or organization who is declared bankrupt ceases to have right of control over finances.
They have to declare all their financial dealings and the creditor will try to recover as much loan amount from that as is possible.
This amounts to a lot of disadvantages as the debtor and borrower gets a very bad financial record.
Their credit rating drops and they can no longer apply for a fresh loan for at least minimum of two years.
Also this bad credit rating remains on your credit record for the next ten years.
What then if you need a home loan? This does not mean that you will not get a new home loan.
There are some financial institutions that are willing to lend mortgage loans in such cases.
Here the lender can assess the property owned by the borrower and offer the amount they can safely recover from selling the asset.
So filing bankruptcy must be the last resort and one can also opt for Bankruptcy Loans which are offered by some institutions to come out of financial crunch and repay the loans.
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