What is Bankruptcy?
With spiralling levels of personal debt many people are turning to Bankruptcy as a way out. But what exactly is it:
In summary Bankruptcy is the status of being legally declared unable to pay your debts. Proceedings are enacted that allow a person or organization to liquidate their assets to pay a reduced amount to their creditors or that allow the rehabilitation of the debtor by requiring creditors to accept reduced payments from future earnings of the debtor. A declaration of bankruptcy will remain on a person’s credit report for varying lengths of time. Declaring bankruptcy is generally considered a last resort as it will effect your ability to obtain any form of future debt, including mortgages.
This entry has been viewed 289 times.
READER COMMENTS:
No comments yet.
