The bankruptcy process is identical to any other legal proceeding. You appear in court and convince the judge that you have no money to pay the creditor and require relief. The judge accepts your confession, and you are immediately released from all liability concerns. The benefit is that you are completely released from liability at no cost.
Any debtor may find the advantages to be extremely advantageous, but they should be aware that with such great advantages come severe consequences. Initially, a bankruptcy petitioner's credit rating is negatively influenced. It is so negatively impacted that creditors will be reluctant to lend to this individual in the future. Even if they have the courage to provide a loan, they demand higher interest rates and deposits and offer very short repayment terms.
Another disadvantage of declaring bankruptcy is that employers now examine credit reports prior to offering employment. Employers are hesitant to hire those who have filed for bankruptcy, and if they do, they attempt to extract extra work from them and pay them less. They seek to take advantage of his financial situation.
If you have no remaining funds or only a modest amount to repay creditors, you can resolve your liability issues through liability settlement. By negotiating with one's creditors, one can eradicate 60 to 70 percent of the loan amount through liability settlement. In addition to granting the debtor additional time to repay the loan, the creditors reduce the interest rate on the remaining loan balance.
This method is supported by both debtors and creditors, as debtors receive complete freedom from liability by paying a small percentage of the original loan amount, and creditors receive a portion of the money back, which they do not receive if the debtor declares bankruptcy. Although the debtor's credit rating is negatively affected by the use of liability settlement, creditors do not hesitate to lend to this type of person because he has at least attempted to repay a portion of the debt.
Those who lack complete bankruptcy information or who are only cognizant of the benefits of insolvency use this method; otherwise, the majority of debtors opt for liability settlement.""
" - https://www.affordablecebu.com/
