Is Bankruptcy the right option for you?
Going bankrupt or sequestration in Scotland is one option for writing off, clearing and getting rid of your debts in order repay your creditors. But it’s not that simple as said. Your choices may have a serious impact in terms of your reputation and credibility. Hearing the word bankruptcy sounds scary because we know that high profile personalities and even business magnate may experience this. If you feel that your whole financial status is in quicksand and your assets are worth more than your debts, you might want to assess your current situation. Actually, there’s no minimum amount of debt necessary to go bankrupt. It is when you’re indebted more than you can afford to pay. Some factors and reasons for filing for bankruptcy are series of unemployment or job loss, large medical bills, mismanagement of assets and excess use of credit and also divorce/separation.
Bankruptcy might sound a promising solution to your problems and providing an escape from numerous calls and mail that seem to bother you; but this might also give you another set of problems. There are certain limitations and restrictions after filing for Bankruptcy. Being implicated with running or being involved in a company without permission from the court is not allowed. Working and getting certain jobs may be a little bit difficult for you. You will find it harder to obtain credit cards since the details of sequestration would be entered on a public online register. It would also be very difficult to get a mortgage, property and other luxurious possessions.
Still, the main advantage of bankruptcy is that it frees the people from their debt in order to make a new start and jump starts their life. You would be debt free in a short amount of time and once you file, you will receive a protection from almost all types of collection activity from your debtors. Applying for sequestration is a big step and if you really consider it as an option, there are several ways to file. To start off, you may want to consider consulting a lawyer and also seek professional debt advice before deciding the course of your action. You must also be resident in Scotland or residing in Scotland within the last six months.
During the filing of Bankruptcy, certain documentation regarding your income and situation would be assessed by the court. Once eligible, you may declare Chapter 7 or Chapter 13 bankruptcy. Once approved by the court, an agreement would be made in which all parties must comply to and it means that all creditors involved can no longer pursue the debtor. Note that not all debts can be eliminated such as student loans and also will not ease any obligations to pay alimony and child support. You might feel that you’re alone and scared, but there are still options for you. If you need some advice and seek some clarifications, you may checkout DebtAdvisoryScotland.net. This site would give you the advantages and disadvantages of sequestration and how it can help you.