Did you know the truth about bankruptcy? It is not an easy thing that many of us experienced, are experiencing and will experience possibly in the future. It is an event that will change the course of your life and cause damage which we will suffer from for a lifetime. This term seems to be so scary for all of us and it is like a living nightmare that we should never let ruin our lives. Some of its numerous effects are marital destruction, job devastation and loss of one’s peace of mind. If you want any or all of these things happen to you, avoid as much as possible this economic or financial ordeal.
It has often been said that bankruptcies are worse than divorce. Only a few people who have gone through this economic ordeal could easily say that they would file it and start all over again. All people who have experienced this would say that it is not a place where you would love to be in. They can attest to the difficulty of being faced with a huge financial crisis in their lives. As a matter of fact, it is included in the top five life- changing negative events that any of us can experience, along with others: loss of a loved one, severe illness, divorce and disability. Nobody can say that it is as negative and painful as losing a loved one but it can change one’s life and leave very deep and excruciating wounds both to the credit report and the psyche.
In the filing of bankruptcy, there are two major parties involved: the creditor and the debtor. The creditor is the one whom an amount of money is owed while the debtor is the one who owes an amount of money to another. A debtor is not necessarily an individual; it can be a company. There are many creditors involved in most cases of bankruptcies ever recorded. There are two different kinds of debt that a debtor can have: secured or unsecured. Secured debt is a type of debt wherein the creditor has the right to hold and take any property of a debtor as payment or security for a duty or debt. The unsecured debt is the reverse of the secured one.
Can we really avoid this life- altering bad event in our lives? The answer is yes because all it takes is proper help from the experts. Certified counselors are out there, ready to back you up and guide you along the way when your world is starting to turn upside down. They will introduce you to a process known as Total Money Makeover in which there is an extensive amputation of things which can be painful to you, but of course, less painful that the life-changing event. Instead of confining your attention to the financial crisis you are about to go through and its effects, better take steps background and find out what are those things that have caused everything to take place in your “about to change’ life.
When you are going through bankruptcies, it means that you are unable to repay your existing debts. Many people misperceive that they cannot borrow money anymore after going through the ordeal when in fact, they still can. In fact, lenders are more likely to lend money to those victims of this crisis but of course, at an increased rate of interest. In this case, the lending companies tend to charge higher rates compared to those of the market. They will also require collateral upfront. In spite of lenders’ taking advantage of your situation, there still a lot of reasons for you to stand up again and find solutions to all the problems that aggravate the situation you are in.