Bankruptcy Debt Relief-Solutions

You have many options to consider before actually deciding that filing for bankruptcy is your best option. These options should each be looked into and maybe even consider speaking to someone who specializes in the financial field or someone that can give you more advice pertaining to your specific situation.

You could simply do nothing. If you feel that you are in financial trouble, but there have been recent changes to cause this then you may want to wait. Some examples may include an illness, or loss of employment. This would only be the best option if you are certain that your financial situation will improve in the near future. It is always better to look into your options before things get worse. Most other options may have some expense involved. If you have no strategy or plan to change the current financial situation you are leaving yourself exposed for much bigger problems. It is always better to work on a solution rather than ignore it.

If you are considering an IVA (Individual Voluntary Agreement) there are requirements that need to be met in order to apply. You would have to meet a certain amount of accumulated unsecured debt, a certain amount of steady income to pay to the IVA each month, three or more debts with different creditors, and a regular income. An Individual Voluntary Agreement in United Kingdom can be a very powerful tool that will enable you to clear your debts if you can qualify.

Working with a debt management program or DMP would mean that a company or service would handle all of your creditors for you. After discussing with an advisor all of your circumstances, including the debts that you have incurred, income, and expenses, an affordable monthly payment would be agreed upon and you would pay this amount to the debt management program. Most often the debt management company will contact the creditors and request that they stop the interest on accounts when this is an option. And make arrangements for payment with them directly. Sometimes a percentage of the debt can be written off. This could be the best option if you need help managing your currents debts and will be able to construct a plan to get back on a good financial track once this has been accomplished. Each debt management program has a process that may vary in cost and how they function.

Many people don’t want to file bankruptcy because they fear the process or simply don’t know enough about filing and the benefits it may actually have for an individual. Some suitable circumstances for an individual to file bankruptcy might include; individuals with little or no assets, including limited equity in their home, individuals whose employment would not be lost or adversely affected by filing, or individuals who agree with the aspect of bankruptcy.

Most often it is a misconception that a personal bankruptcy will destroy your financial future, and that a bailiff will come take all of your possessions. Filing bankruptcy is actually entering you into protection from creditors and most often gives you the chance to start over fresh, with a clean slate. Bankruptcy is not to punish you. After discharge you are able to rebuild your life. And furthermore bailiffs are no longer allowed to come around once you have filed bankruptcy.

Bankruptcy is a good way of dealing with debts you cannot pay. The process allows you to be free from overwhelming debts. There are some restrictions, for example you must include all creditors you currently owe. Bankruptcy should be considered if you have no assets to protect, live in a mortgaged property that has negative equity or simply have no other options that will work for you. There is a Court fee that has to be paid upon application for all cases and the petition to file will not be accepted without payment. In some cases you may have to pay upon agreement a portion of your debts owed through the Official Receiver.
If you work for the Police Force, Emergency Services, or are in the Armed Forces, you may have other options that apply to your situation. Please seek further advice.

The process of choosing which option is right for you can be scary and intimidating. Don’t be embarrassed to seek advice with financial advisors to help you make your decision and relieve some of the stress you are experiencing. Most people experience financial difficulties at some point in their life. How you handle them is up to you. Remember there are people that can help you that have worked with many different types of situations. If you feel you are not going to be able to get out of your financial struggles alone you need to seek help as soon as possible, the longer you wait the more trouble you may cause.

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