There are simple ways to tell if you are a candidate for bankruptcy. While this may not be the most encouraging news, it can be helpful if you are to make any lifestyle or fiscal changes to help change the future of your financial situation and right the ship in terms of your money management skills. The bottom line is, of course, how you choose to handle the news of impending bankruptcy and financial doom and the moves you make within your personal realm of control to change how you spend, how you invest, and how you manage your money in an overall sense.
As we know, bankruptcy means that you have the inability or lack the capacity by which to pay your creditors or those that you owe money to. This refers to a legally declared inability. Bankruptcy is not just a personally declared inability to pay your debts or bills. Your creditors could also declare a state of bankruptcy for you should they want to recover some of the money they are owed in light of the possibility of you not paying them. The primary purpose of legal bankruptcy is to give the person declaring bankruptcy a fresh start in the fiscal sense and relieve them of most of their debts.
This also allows for the repayment of the creditors in a timely manner, which is good news for them. The debts are resolved through the division of non-essential assets of the bankrupt debtor. This also allows the debtor to be discharged, officially, of the majority of their financial obligations even if their debts have not been paid in full. This happens after their non-exempt assets are distributed to their creditors. The creditors are not permitted to extend any lawsuits or continue any particular legal action after bankruptcy is declared.
For more information, contact Charles L Basch II, directly at 313-343-9930 today for a free comprehensive confidential consultation.