What are the benefits of declaring bankruptcy?
"The circumstance is all too prevalent nowadays. You are unable to satisfy your debts as they mature. Your credit card debt increases dramatically. You begin to screen your phone calls in order to avoid disagreeable payment requests. Your wages are garnished. When the common warning signs of insurmountable debt emerge, a debtor must consider whether bankruptcy is a viable option. So what are the benefits of declaring bankruptcy?Creditors have access to a variety of instruments. Their primary weapon is the telephone, and they may call your acquaintances, coworkers, and place of business. You may receive letters or electronic communications containing threats. As a result of a garnishment by a creditor, your paycheck may arrive and, to your dismay, be pitifully small. You may be notified when a property is seized. Filing for bankruptcy halts all collection efforts. Even creditors who have obtained a judgment against you must suspend all actions when you file for Chapter 7 or Chapter 13 bankruptcy. Once the court imposes an Automatic Stay in Bankruptcy, creditors must cease all actions, even if they had the right to repossess property. Thus, the debtor is able to obtain a new financial beginning and retain their assets.It is a common misconception that registering for bankruptcy will result in termination from your job. An employer cannot terminate an employee for declaring bankruptcy. This does not imply that there are no disadvantages.Personal bankruptcy is not a panacea. You will not be shielded from obligations such as maintenance or alimony agreements, recent taxes, or government sanctions by filing for bankruptcy. If you fail to list a particular creditor during the filing process, that creditor will still be able to pursue payment of your debt. These obligations are known as non-dischargeable. Other examples include student loan debt, debts resulting from damages and injuries caused by intoxicated driving, and debts caused by the debtor's intentionally malicious or deceptive conduct. After declaring bankruptcy, it may be difficult to obtain new employment for a number of years.
" - https://www.affordablecebu.com/
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"What are the benefits of declaring bankruptcy?"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 03 June 2023
and updated on 03 June 2023