Economics Finance

If you have reached a point where your finances are spiraling out of control and you can simply not afford to repay debts you owe within three years and even with significant cut backs and changes to your spending, then you are most likely in a situation where you are considering the possibility of declaring bankruptcy. And if that does apply to you, then you are probably wondering just what are the effects of declaring personal bankruptcy? What will the consequences be?

Well, first of all, take comfort from the fact that you are not alone in considering bankruptcy. And also, bear in mind that it is a legitimate means of getting a fresh financial start for those with no other alternative. But the effect on your credit rating will be negative. Bankruptcy is considered the ultimate admission, in many ways, of an inability to manage one’s finances. It shows up on your credit file for ten years. During this time you will find it terribly difficult to obtain credit and even in situations where you are able to get credit, you will face extremely high interest rates are you will be deemed a high risk borrower. You can, however, with patience, sensible spending and discipline, rebuild your credit. Continue reading ‘Effects of Declaring Personal Bankruptcy That Requires Careful Consideration’ »

One thing I’ve never understood is why some people insist on going it alone. No matter how difficult the situation may be, they feel that they have to prove something to themselves and to their loved ones by not seeking assistance from professionals. This is usually a foolish attitude to have when you are stuck in a serious life crisis, and that is especially true if you are considering declaring personal bankruptcy.

You may have heard some people talk about filing bankruptcy online by filling out a few forms or trying to go through the process without the assistance of a lawyer. Let me tell you why that is not a good idea.

The bankruptcy laws have changed in recent years, and they have become increasingly complex. Even lawyers have complained about the confusing language in the statutes. Even though the new bankruptcy law contains the words consumer protection, this federal law does nothing to help consumers navigate their way to financial recovery. Continue reading ‘Filing Bankruptcy Online Without a Lawyer is Not a Good Idea’ »

Financial problems are bad enough without having to worry about what your friends and families will think if they find out about your situation. This is especially true if you decide to file personal bankruptcy and your family members find out about it.

It will undoubtedly be difficult to ignore these feelings, but you need to concentrate on more important issues in order to resolve your financial crisis and restore your family’s future. You should never make decisions simply out of fear or shame; rather, you should give your debt problem careful consideration and make the best possible choice for you and your family.

If that means that bankruptcy is the right choice for you (which you only know if you sit down with a good bankruptcy attorney), then you shouldn’t be dissuaded by the criticisms of a family member. As long as you have made a decision after carefully examining your options and discussing your problems with the professional, then you should be determined to follow through with whatever choice you make. Continue reading ‘What Will Your Family Think About Your Bankruptcy?’ »

The credit industry simply hates to see someone declaring personal bankruptcy. After all, for those who provide unsecured finance, this means that they are unlikely to see that money repaid, in the case of chapter 7. As such, many credit industry figureheads tend to make out those who are declaring personal bankruptcy as being scam artists who simply want to evade their debts and avoid responsibility to paying them. They make out that anyone who decides to declare personal bankruptcy is someone who will avoid repaying their debts at the expense of other hard working Americans.

This, of course, is not the case. Anyone can get in over their head financially. Even the federal government has!! But the point is that, while consumers should absolutely take complete responsibility for their bad spending habits, people who declare bankruptcy often have no other choice. If you are in a situation whereby, even with all the possible changes you can make to your spending habits, you would still be entirely unable to pay off your outstanding debts in the foreseeable future, then you probably have little choice but bankruptcy.

Continue reading ‘Declaring Personal Bankruptcy – Debunking the Myth of People Who File For Bankruptcy’ »

Attorney-General, Robert McClelland has recently released details of proposed changes to existing personal bankruptcy legislation.

The changes are now available for public consultation and are intended to modernise the current legislation to better reflect what is actually happening in the community. Specifically, it is addressing the fact that we are increasingly seeing a larger number of bankruptcies in relation to consumers with a small amount of assets and low income levels. Where previously bankruptcy was more commonly associated with individuals who were often simply attempting to avoid paying their debts, bankruptcy is now being increasingly accessed by those who have simply found themselves having a hard time financially.

Some major items of the proposed changes include:
• increasing the minimum debt for which a creditor can petition for bankruptcy from $2,000 to $10,000;
• increasing the stay period from when a declaration of intent to file a debtor’s petition is filed to when a creditor may commence action to recover debts from seven to 28 days; and
• increasing the income, asset and debt thresholds to allow more people in financial distress to enter into voluntary debt agreements. Continue reading ‘Changes to Personal Bankruptcy Laws Reflect Change in Economic Climate’ »