Filing for bankruptcy can sometimes be the best way of getting your life back to somewhere near normal after a prolonged period of receiving stressful phone calls from your ever persistent creditors. You will no doubt have tried to arrange different interest rates that could give you some relief, even pleaded for extra time to pay by offering smaller payments. You will have soon come to the realisation that once a creditor gets a sniff that there is the least chance of you defaulting, their attitude towards you changes. You are no longer a prospective ongoing customer of the future that they want to nurture, you are now enemy number one and all they want from you is the money you owe them. Preferably all at once.
If you are being confronted with harassing phone calls and letters you have likely tried credit counseling, cried out for loan consolidation, probably even tried to sell your home but in the end the only way you could see any real relief was in bankruptcy. Even the fear of getting no credit in the future doesn’t worry you anymore. You have probably done your dash in this department anyway. The thought of what your friends and family members think doesn’t even worry you anymore, all you want is a way out of your present predicament. This is the thinking most desperate people suffering a financial crisis come to accept. Not necessarily willingly, but they see no other option. It becomes a necessity.
The Benefits of Bankruptcy can be Great
Once you bite the bullet and bankruptcy proceedings begin, you will be surprised how fast things start happening and the level of relief you can actually enjoy. Some might look on this relief as being a perk of bankruptcy, as you start sleeping again at night and no longer does a shiver go down your spine when the phone rings. Some of these other perks of bankruptcy include the following:
- You can not go to jail because you owe money as once you get protection under bankruptcy laws your creditors can no longer have a warrant issued to have any of your property taken from you and sold in an attempt to recoup their money.
- You will feel assured that your creditors have to stand back and not threaten you anymore about taking from you what you don’t have to give.
- No longer will any collection agencies or creditors be able to harass you in an attempt to stress you into submission.
- You will be allowed to keep your car, especially if it is valued at less than $3,500.
- Your wages will be protected and nobody will be able to have a garnishee order imposed any longer.
- All your household goods and clothing are protected and can not be taken from you.
- You will receive an automatic stay that will be effective immediately on you filing for bankruptcy. This means all your creditors will have to cease all action against you. Demand letters will cease as will phone calls demanding payment.
- All law suits against you regarding you owing money will be stopped.
- If your property is in foreclosure and no buyer has yet made arrangements to buy, the foreclosure action will have to cease immediately. Your house will be saved.
- At the conclusion of your case a bankruptcy discharge will be granted, all of your debts (with very few exceptions) will be cancelled. This means your debts will be wiped clean and you get a brand new start debt free.
You are able to get a new financial start by taking advantage of bankruptcy laws mainly because governments feel a lot of the causes of bankruptcy lies in giving credit too easily, or the bankrupt person may have occasioned certain experiences that were beyond his or her control. Many people once out of bankruptcy make arrangements to pay some of the debt they owe although there is no longer any legal enforcement to do so. It is unusual however for discharged bankrupts to pay back any money owing to large corporations.
Discharged Bankrupts Often Change Their Way of Living
Bankruptcy can make your life worth living once more and it is a foolish person who falls into the same financial mess on any future occasion, although this does often happen. Most people who experience bankruptcy are reported to regret having to take such action and take positive steps to ensure they never live beyond their means ever again. The problem with our credit driven society is that although a person has declared him or herself bankrupt, they often still try to obtain credit, stating they need a credit card in case an emergency situation developed. Others swear off credit forever and live the rest of their lives dealing with cash only in all their future transaction. Others more attuned to the modern way of living use debit cards or write cheques.
Kristy Ramirez writes for Life Insurance Finder Australia, a free life insurance comparison website, where she helps people to compare and select the best life insurance or income protection insurance policy to meet their needs at the cheapest possible price.