Being unable to pay the debts can be a huge stress. The pressure is built from different angles when you’re surrounded by the debt. The lenders start making calls every few days to force you to pay the pending debts. And they might also hire a debt recovery agency to collect the remaining payments from you. In this situation, you’d get into major trouble and you’d feel stressed for the whole day.
However, Bankruptcy is an option you can use to get rid of the stress. Your friends might have also suggested you file for bankruptcy. But understanding bankruptcy is mandatory before you think of taking this step. The authorities will put several restrictions on you if your application got approved. And your life might become a bit complicated.
But the positive angle of the Bankruptcy is that it makes you feel free from paying off the debt you owe. When it comes to filing for bankruptcy, you need to reach out to the court. The authorities will then analyze your financial situation to find out if you actually qualify for bankruptcy or not. The court officials will find information about your assets and income to figure out if you can repay the debt or not.
The authorities will clear off the debt if they found that you don’t have enough resources to pay off the debt. However, if they found that you can clear a partial amount, they will set up a new repayment plan for you based on your resources. This option is available for both the individuals and the businesses. But the stats show that usually, the individuals file for bankruptcy.
According to a survey, 97% of bankruptcies are filed by individuals. And only 3% of businesses file for bankruptcy in extreme financial problems. But before you think of filing for bankruptcy, you need to use the services of an expert to find out if you’d actually qualify for it or not. The expert will collect information about your resources and other assets to provide you with an accurate report.
Make sure that you collect all the important documents like tax returns, recent bank account statements, and the recent brokerage account statements. These are the documents that will provide a clear overview of your current financial situation. And they will help in making your case a success.