Bankruptcy Explained
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Benedict Smythe
Apr 18, 2013, 4:40:03 AM4/18/13
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Please consider this free-reprint article written by:
Benedict Smythe
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Article Title: Bankruptcy Explained
Author: Benedict Smythe
Word Count: 538
Article URL: http://www.isnare.com/?aid=202019&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=202019
Easy Publish Tool: http://www.isnare.com/html.php?aid=202019
*********************** ARTICLE START ***********************
Bankruptcy is a decision that would make anyone think a hundred times over before making. Aside from the stigma that goes with this option, it also belittles a person�s self esteem. Being publicly advertised, bankruptcy demeans an individual�s status in the society. A bankrupt person should be ready to face the rejection of the society.
Why then would a person in his right mind choose to go bankrupt? An individual who is unable to pay his debts due to the lack or absence of money or assets is said to be insolvent. A court action will declare this insolvent debtor bankrupt. Being bankrupt frees or releases the insolvent debtor from further obligation; all his remaining assets will be distributed to all his creditors. The court action will ensure that the assets are fairly shared by the creditors.
A bankruptcy order will authorize a trustee to sell your car, your home and all your other assets. The trustee may also garnish a part of your salary to repay the outstanding debts.
There are two ways by which an insolvent debtor can be declared bankrupt.
1. If the debtor declares himself voluntarily.
2. Involuntarily declared by a creditor. Take note that refusing to acknowledge a bankruptcy proceeding will not stop the court from giving the order.
If the debtor is thinking of offering any settlement to the creditor, it should be made before the hearing of the bankruptcy petition. Aside from being difficult, additional expenses will be shouldered by the insolvent debtor.
Bankruptcy is a way by which a stressed debtor can gain peace of mind, a way to be free from the hounding and harassment of creditors. Direct dealings with creditors will be eliminated since a trustee will be tasked to do the job. Eventual court actions that will be filed by other creditors will be prevented.
Bankruptcy option is a way to have a fresh start. But just like any other option, bankruptcy would have negative result. On the down side, being bankrupt will be a part of a person�s financial history- a record that will stay for at least 10 years even after the bankruptcy order is annulled.
Being bankrupt will have the implication of being a bad credit risk. This may not be true. Other factors could have lead to the inability of a person to settle his debts. A bankruptcy order will give a distorted credit rating. Future dealings with lenders will be jeopardized. This record will adversely affect future employment. Potential employers will have reservations with regards to the person�s financial security. A bankrupt person will be prohibited from acting as company director. Neither will he be allowed to be a member of the local authority. A bankruptcy order will slow down future business dealings since all prospective clients and partners have to be informed of the bankruptcy.
Since bankruptcy orders are published, the debtor would suffer psychologically. Everyone would be aware of his misfortunes. Though some people will be sympathetic to his plight, others would subject him to ridicule. Bankruptcy therefore, should be the last option to be considered by an insolvent debtor.
About The Author: Benedict is a freelance article writer who specializes in Finance and Debt advice. Benedict mainly writes Debt related articles for http://www.wilsonfield.co.uk/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=202019
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Benedict Smythe
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=202019
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=202019
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Bankruptcy Explained
Author: Benedict Smythe
Word Count: 538
Article URL: http://www.isnare.com/?aid=202019&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=202019
Easy Publish Tool: http://www.isnare.com/html.php?aid=202019
*********************** ARTICLE START ***********************
Bankruptcy is a decision that would make anyone think a hundred times over before making. Aside from the stigma that goes with this option, it also belittles a person�s self esteem. Being publicly advertised, bankruptcy demeans an individual�s status in the society. A bankrupt person should be ready to face the rejection of the society.
Why then would a person in his right mind choose to go bankrupt? An individual who is unable to pay his debts due to the lack or absence of money or assets is said to be insolvent. A court action will declare this insolvent debtor bankrupt. Being bankrupt frees or releases the insolvent debtor from further obligation; all his remaining assets will be distributed to all his creditors. The court action will ensure that the assets are fairly shared by the creditors.
A bankruptcy order will authorize a trustee to sell your car, your home and all your other assets. The trustee may also garnish a part of your salary to repay the outstanding debts.
There are two ways by which an insolvent debtor can be declared bankrupt.
1. If the debtor declares himself voluntarily.
2. Involuntarily declared by a creditor. Take note that refusing to acknowledge a bankruptcy proceeding will not stop the court from giving the order.
If the debtor is thinking of offering any settlement to the creditor, it should be made before the hearing of the bankruptcy petition. Aside from being difficult, additional expenses will be shouldered by the insolvent debtor.
Bankruptcy is a way by which a stressed debtor can gain peace of mind, a way to be free from the hounding and harassment of creditors. Direct dealings with creditors will be eliminated since a trustee will be tasked to do the job. Eventual court actions that will be filed by other creditors will be prevented.
Bankruptcy option is a way to have a fresh start. But just like any other option, bankruptcy would have negative result. On the down side, being bankrupt will be a part of a person�s financial history- a record that will stay for at least 10 years even after the bankruptcy order is annulled.
Being bankrupt will have the implication of being a bad credit risk. This may not be true. Other factors could have lead to the inability of a person to settle his debts. A bankruptcy order will give a distorted credit rating. Future dealings with lenders will be jeopardized. This record will adversely affect future employment. Potential employers will have reservations with regards to the person�s financial security. A bankrupt person will be prohibited from acting as company director. Neither will he be allowed to be a member of the local authority. A bankruptcy order will slow down future business dealings since all prospective clients and partners have to be informed of the bankruptcy.
Since bankruptcy orders are published, the debtor would suffer psychologically. Everyone would be aware of his misfortunes. Though some people will be sympathetic to his plight, others would subject him to ridicule. Bankruptcy therefore, should be the last option to be considered by an insolvent debtor.
About The Author: Benedict is a freelance article writer who specializes in Finance and Debt advice. Benedict mainly writes Debt related articles for http://www.wilsonfield.co.uk/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=202019
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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