Debt Consolidation

Custom Search

Debt Consolidation
Debt Relief
Filing Chapter 11
Filing Chapter 13
Filing Chapter 7
Filing Corporate Bankruptcy
Filing Personal Bankruptcy
Low Cost Bankruptcy
Bankruptcy Attorneys
Bankruptcy FAQs
Bankruptcy Laws
Filing Bankruptcy in
Life After Bankruptcy
Personal Bankruptcy
Types of Bankruptcy
Bankruptcy Law Firms
Business Bankruptcy Laws
Chapter 13 Bankruptcy
Chapter 7 Bankruptcy
Federal Bankruptcy Laws
New Bankruptcy Laws
Personal Bankruptcy Laws
Understanding Types of
Best Credit Card
Will the New
Rebuilding Your Life
Protecting Your Credit
Leasing After A
Bankruptcy: Is
What the New
What You Need
Bankruptcy Attorney -
Bankruptcy Chapter 7
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy
Debt Consolidation
Debt Relief
How to Avoid Bankruptcy
by Michael Curry
Many people who are overwhelmed with debt problems consider filing for bankruptcy. However, going bankrupt has a number of serious disadvantages and should be avoided if at all possible.In this article we will discuss why bankruptcy should

Many people who are overwhelmed with debt problems consider filing for bankruptcy. However, going bankrupt has a number of serious disadvantages and should be avoided if at all possible.

In this article we will discuss why bankruptcy should be avoided and possible alternatives to filing for bankruptcy.

Getting into debt is easy, especially with so many lenders offering you money via loans and credit cards. It is all to easy to run up huge bills when you are charged high rates of interest on your un-paid debt. Before you know it creditors are pounding on your door and you are too scared to open your mail. Thatís when you think that bankruptcy might be the answer.

Contrary to popular misconception however, going bankrupt does not mean that you do not have to pay your debts. It simply allows the court to intervene and create a schedule for re-payment. Furthermore it opens you up to all sorts of penalties and disadvantages.

For example, if you are declared bankrupt you may lose your home and you will be unable to obtain credit over £500. In addition to this, your bank accounts will be closed and you will have to hand over your credit cards to the courts. If you have a business, your company will be closed down and your employees will be dismissed. Plus, in the future you will not be allowed to be involved in forming, managing or promoting a company without the courtís permission.

There is also a huge social stigma associated with bankruptcy. This is because bankruptcies are announced in the local papers. So you will not be able to hide the fact that you have gone bankrupt.

So can you avoid bankruptcy? In 1986, the UK government introduced an alternative to bankruptcy called an IVA.

IVAs are formal and private agreements between a debtor and his creditors. In this agreement the debtor proposes to pay back an affordable amount of his debt each month.

In return the creditors write off a certain amount of the debt altogether and freeze interest on the debt. It is not unusual for as much as 85% of a debt to be written off and repayment amounts can be as low as £200 a month. After five years, if the terms of the IVA have been adhered to then the debtor is declared debt free.

An IVA is a good alternative to bankruptcy because there are no stigmas or disadvantages associated with it.

Clear Start, the National Consumer Debt Advice Service offers free IVA advice to help you avoid bankruptcy: Alternative to Bankruptcy

The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Eatontown borough Macksville Bonneau town Tansem township Balance of Pike township Harvey Lawrenceburg Catron County Foxfield town Spring Lake town Hammond Overton Red River County Long Branch borough Coloma charter township Plandome Manor village Lombard village (pt.) Geddes Maggie Valley town Columbus Alachua Effingham city (pt.) Broeck Pointe Pleasantville Farmington town Worthington San Fernando Moore Springfield town Conconully town USA UK Australia Canada Palmyra Atoll Ecuador Bahrain Guam Paraguay Tajikistan Guinea Western Sahara Navassa Island Guinea Fife Cheshire Peeblesshire Selkirkshire Roxburghshire Anglesey Argyllshire Kinross Down Flintshire Missouri (MO) Arizona (AZ) Iowa (IA) South Dakota (SD) Colorado (CO) Oklahoma (OK) New Jersey (NJ) Georgia (GA) Montana (MT) Colorado (CO) Montana (MT) Arkansas (AR) South Carolina (SC) Nevada (NV) Virginia (VA) Marshall Islands (MH) New Hampshire (NH) Oregon (OR) Federated States of Micronesia (FM) New Mexico (NM)