Most of us very scared about bankruptcy. But do you really understand about this term? Let’s read the information about bankruptcy.
What is bankruptcy?
Bankruptcy is a legal procedure that should be used as a last resort to solving financial problems, when you try other options.
A decision to apply for bankruptcy is a serious step, and in many cases, it will not clean up your credit record in full or give you a new beginning. It also remains in your credit report for several years depending on the specific bankruptcy laws in your country, and may affect your ability to buy a house or get car insurance. In addition, the bankruptcy may not allow you to keep property when the creditor has not paid the mortgage or lien on it.
redit report for several years depending on the specific bankruptcy laws in your country, and may affect your ability to buy a house or get car insurance. In addition, the bankruptcy may not allow you to keep property when the creditor has not paid the mortgage or lien on it.
What might happen?
Bankruptcy laws of every country may be different, and obligations arising from bankrupt application may vary. You must negotiating with the bank or financial advisor, or the law before making a decision. This will help you decided whether to apply for bankruptcy is the only way or there is a better alternative.
In general, if you are declared bankrupt, the court usually appoints the Official Receiver to deal with bankruptcy cases, which included the sale of assets, registration of creditor claims and pay dividends to your creditors.The Official Receiver is the public employees and employees of the court.
Official Receiver will take over the property of your assets and is responsible for its realization and to pay a dividend to your creditors. If you are hired, the Official Receiver will evaluate the contribution that you must do to pay back your debt, after taking into account what you reasonably need to support yourself and your family.
There are many limitations that may apply to you if you are declared bankrupt. You may not be allowed to leave the country without the permission of the Official Receiver. In general, you can not bring or pursue any legal action, you may be eligible to be appointed or serve as a trustee, to play a role, directly or indirectly in the management of a company or business or work as a director of a company without the permission of the court.
That’s all a brief description of the bankrupt. Hopefully it can help you to understand about bankruptcy.