The decision to file for bankruptcy is a serious matter. There is no way back for you because the bankruptcy information will appear in your personal credit history. This is why financial experts recommend choosing many other options first before deciding to go with bankruptcy. You will face several consequences of going bankrupt and you must be prepared for it.
To shed some light on your decision on filing for bankruptcy helpline, here are some of the things you can expect after filing bankruptcy.
This is a natural result of going bankrupt – the record will appear in your personal file and it will affect your credit rating significantly. The bankruptcy will exist in your record for several years. Hence, potential creditors and other financial institutions will be able to see it appear on your records.
Freezing of Accounts
Depending on the status and size of your debt by the time you filed for bankruptcy, some creditors might request to freeze your bank accounts. If there are any existing savings accounts, the ownership of that account will be assigned to a trustee. In some cases, there are banks that will allow you to open a bank account even with a bankruptcy record; however, it is important to divulge that bankruptcy information upon opening of the account.
Your bankruptcy record will appear on your personal file that is available through the National Personal Insolvency Index. This is a public document and therefore anyone who wishes to access it can do so. This is often used by creditors and financial institutions when performing a background check on an individual. This means that anyone will know that you have had a bankruptcy record on your file. If you want to know how to clear bankruptcy, it will vary on the type of bankruptcy filed for. A chapter 7 bankruptcy lasts for 10 years on your credit report, 7 years for chapter 13 bankruptcy. Read more on Debt Helpline
Immediately after you have filed for bankruptcy as a method of clearing debt with Debt Helpline, you could lose some of your personal assets that are deemed of value. This might include your car, your house, or anything of value in your property (such as computer and other electronics). The amount of your assets that are obtained by your creditor will vary depending on the amount you owe them by the time of bankruptcy filing. The assets that are taken away from you as consequences of going bankrupt will also vary depending on whether you filed for Chapter 7 or Chapter 13 Bankruptcy.
There are serious consequences of going bankrupt. However, you can look at it in a positive perspective. You might view filing of bankruptcy as an opportunity to get a fresh start financially. It will release you from the burden of your debt commitments and start afresh. There will be some negative setbacks in terms of your credit rating but it will be worth it in the long run once you can regain your financial footing. It is therefore what you do with your financial situation that matters. For more details visit http://www.debthelpline.com.au/2012/07/bankruptcy-fresh-start/