Debt is one word that is so much dreaded, especially when it involves huge amount. Before you embark on any Debt Settlement Processing, you have to acquaint your self with debt matters and the options available at your disposal. Such information can be obtained by either consulting experts in debt management or meeting with your financial institution.
Bankruptcy Should Be Your Last Option
Before you embark on bankruptcy as your debt settlement remedy, make sure you must have tried other possible means until you are sure that there is no more remedy other than going bankrupt; in that case your choice is justified. By the way, bankruptcy is a Debt Settlement Processing undertaken by individuals who has no other means of repaying their debts.
What Happens When You Are Declared Bankrupt?
In the first place, the court steps in as a mediator between you and your creditor. The court from that time will step in and ensure that you are shielded from any adverse treatment your creditors might want to mete out to you.
If in the course of time, you are able to come up with part of the payment for your debt, you will only do so through the court in a space of 3 years.
When three years elapses, any part of the debt unpaid shall be written off.
Your bankruptcy period is usually for a whole year
Your car will not be confiscated since it is rational for you to keep it, besides vehicle is not regarded as a property of high worth.
Also, any of your home items that of a valuable worth will be left for you, only on the condition that the worth of these items is not more than what it will cost in replacing them.
You will be required to sell any asset in your possession that is of high worth e.g. costly vehicles and antiques.
If you have holding to equity or any landed property, whether you have full possession of the landed property as the owner or you are still paying mortgage on it, it will be transferred to the court. The court in return will take action to realize this equity for the benefit of your creditors. This means that you have the option of getting a third party to purchase the equity by making offer to the court or the court will be forced to make the sales of the equity by themselves.
There seem to be some modifications in the Enterprise Act of April 2004 concerning laws governing bankruptcy. This change is favorable to some individuals who want to start bankruptcy debt settlement processing as a means of debt settlement, but to some people, it is not.
It is highly important that any one seeking to start debt settlement processing in bankruptcy, should first consult debt management experts with the details of his/her debt problems. Advice will be offered to you on the best debt management solution that is suitable for your peculiar debt problem. Bankruptcy might not be the best solution for your debt issues.
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