In times gone by, bankruptcy was a major social stigma and spelled the death knell for individuals and businesses, in so far as reputation and future credit went. It was a matter of honour for many. You had to be at rock bottom financially with very little option but to declare yourself a bankrupt and all that it entailed.
This form of spiraling financial disaster can sometimes lead to bankruptcy and drastic action by creditors in the form of debt collection agencies. Debt collection methods can include seizing goods, cars, and sequestering bank accounts, leaving the debtor with the original debt and no goods. This is never fun.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
This could include other courts, the Internal Revenue or the tax office, relevant professional organisations. The official Receiver would apply certain restrictions to your banking practices and spending. Some of your debts like mortgages, car loans etc remain and you are still responsible for them
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.
This form of spiraling financial disaster can sometimes lead to bankruptcy and drastic action by creditors in the form of debt collection agencies. Debt collection methods can include seizing goods, cars, and sequestering bank accounts, leaving the debtor with the original debt and no goods. This is never fun.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
This could include other courts, the Internal Revenue or the tax office, relevant professional organisations. The official Receiver would apply certain restrictions to your banking practices and spending. Some of your debts like mortgages, car loans etc remain and you are still responsible for them
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.
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