In today’s society and economy, it’s becoming more and more common that individuals of younger ages consider, or successful pursue and achieve bankruptcy status. However, like all big decisions in life, such a big move also requires a lot of money, thought, research, and will include both repercussions of both positive and negative nature.
In today’s world of technology there are swaths of information and resources available both online and in person to assist in the legal process of successfully achieving bankruptcy. Additionally, laws directly pertaining to such a decision, as well as details regarding requirements and expectations might also easily be found available online.
While different people have different reasons for doing so, the common trend in considering and declaring bankruptcy is typically focused around an individual in which whom has had the displeasure of experiencing a larger overhead than income. In many cases, such circumstances are founded on common elements such as credit card debt, defaulted loans, and auto payments.
Preparation for considering and applying for Bankruptcy is a very big process. Included in such should be a time in which you sit down, review all past due bills, measure your total assets (such as cars, savings, properties, or other investments), and identify the likelihood of being able to maintain your current financial situation. Often, individuals whom are seriously considering or applying for Bankruptcy have already failed to honor past due balances, bills, and other financial obligations such as loans. Those whom have excessive medical bills and an official diagnosis of a life-threatening, altering, or interfering illness (perhaps back by government recognition, such as social security issuance) will be most successful with the Bankruptcy filing and achievement process.
While there are a handful of upsides to declaring Bankruptcy, like anything in life, it also comes with it’s share of downsides. For example, individuals whom have successfully achieved Bankruptcy status in the courts will have to accept a stigma or label in which will follow them around for the rest of their lives. This label, even know officially ‘removed’ after 10 years, is still one in which must be disclosed to future employers, banks, and other forms of creditors. Lastly, it’s important to note that most government-debt will not be forgiven, although could be placed on suspension or extended—specifically if and when an individual is within Bankruptcy court and successfully achieves such a status and ‘fresh start’. This means for students out there who have racked up endless student loans that this may not necessarily be the solution for you.
On the other hand, benefits to declaring bankruptcy will ensure that most if not all creditors are issued a stop-notice so that you are no longer harassed or facing the constant stress of unpaid debt. Not only is declaration of bankruptcy a legal right within our government system, but also one in which has and continues to be commonly used by some of the worlds most successful entrepreneurs and ‘moguls’. This however, does not mean that it is fit for your ‘average Joe’, college student, or businessman.
In the end, declaring Bankruptcy isn’t for everyone. For some, asset and liability balance or lack there of is not a directly determining factor in terms of eligibility. It’s important to consult with a professional legal and financial adviser before making a final decision as to if declaring Bankruptcy is right for you.
Author Bio: Tony Rollan works for the Weller Legal Group . He is an author of many articles on personal injury, bankruptcy, data security, alternative medicine and technology
Image credit: Erick Jones