Bankruptcy Filing and Its Alternatives

June 28, 2012 by  Filed under: Bankruptcy 

The concept of bankruptcy was introduced many years ago so that a debtor could be helped with his debt issues, and his financial disaster could be brought to an end, with getting a control over his financial income and assets. Bankruptcy is now very different in filing as to what it was like when it was introduced.

So many different ways have been identified to file for the petition however, only a few of them are feasible. So many law chapters indicate that you can file bankruptcy under a law (chapter 7, 11, 13), with different pros and cons regarding every chapter.

Procedure

Under chapter 11, the best chapter that can help one avoid giving away his assets in bankruptcy has been regarded the best way to file a petition under. Usually when a person files for the bankruptcy, he loses all his property, bank accounts and assets that have been taken up during that period. However, under chapter 11, you can keep the assets with you so that you are able to make a fresh start after the petition is successfully over.

1) The bankruptcy filing is done for a year and in this time you are ceased from payments to any creditors. At the end of the period, the debt is written off. However, the bankruptcy discharge is not appropriate for the unsecured debts.

2) Many employers may cease to give the bankruptcy filer jobs, as they have the criteria that people with good credit history can only work in their organizations.

3) One cannot obtain more than 3000 pounds of loans if he wants to.

4) All his bank accounts can be sealed and the credit history will be affected for a number of 10 years or so.

5) You have to pay 700 pounds or more if you are willing to file a petition in court

Options to Avail

There are so many options/alternatives to avail if you think that bankruptcy is not for you. You can log on to the many websites to find out about the alternatives such as the:

1) Debt relief orders

2) IVA

3) Debt management companies

4) Debt consolidation

5) Trust deeds

6) Snowball technique

7) Debt negotiation etc

These options are less expensive than bankruptcy and can surely help you out in easy paying of debts to all the creditors without them bugging you from time to time. You can ask for information on the many alternatives from the accountant in bankruptcy and the attorneys that work in this field. Other than that, that you can log on to the internet to find out more what you need to know about the topic. So many online blogs and forums are there to help you out. Past users of such alternatives have introduced the websites for the ease of other users so that everyone can be informed and can take help to get out of all the debt issues.

The best of all websites is the one from where you can get plenty of information on the topic of bankruptcy and how to avoid it with different alternatives that suit your financial need.

Muhammad Azam is a Professional having experience in IT, Latest Technology and Personal Finance. If you are looking for reliable information on debt management, bankruptcy, or on any debt related issue, then visit www.goodbye2debt.co.uk.

Article Source:
http://EzineArticles.com/?expert=Muhammad_Azam_Gohar

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