Within a few days, it will be a year before our state passed a law, according to which ordinary citizens can declare themselves bankrupt and rescind themselves of further financial obligations. This can be done under several conditions. First, the debt should be 500 tons and more, and the violation of the terms of payment for more than 3 months. If you qualify for these two criteria, you can file for bankruptcy in court. But before this, the right step will be to familiarize yourself with the question and weigh the pros and cons.
At first glance, everything may seem easy and simple. You write a statement, and you write off all debts. Let’s look at the order, what kind of “service”. First of all, an individual who has decided on such a procedure needs to choose one of two options, bankruptcy or debt restructuring. The first option involves the loss of property of the borrower. To pay off all existing at the time of registration procedure, debts are written off the property of a person. Further, it is sold at a special auction and, with the money obtained in this way, it is planned to repay the debt obligations. If the funds are not enough for the entire debt, the balance is debited automatically.
This is undoubtedly a more loyal way to gradually part with its debts. If you have a steady, stable income, it is best to choose it. Having understood in detail the financial situation of the borrower, he is provided with an appropriate installment plan, which he undertakes to pay. In this case, the property of the borrower is not subject to sale.
The applicant has the right to choose the most convenient option. The big plus of both types of procedure is that a person is completely exempt from communication with creditors.
Cons of bankruptcy
If you have chosen the option of recognizing bankruptcy, be prepared for the fact that for the next five years the consequences of this decision will haunt you everywhere. When applying for a new loan, you will have some responsibility. The most important obligation is to expressly indicate that you have filed for bankruptcy. Undoubtedly, the fact of recognizing bankruptcy reduces the chances of getting a loan, but if you do not indicate such information in the application and it comes to light later, there will be much greater problems. It will also be impossible to repeat the procedure for 5 years. Until 3 years have passed since the recognition of a person as bankrupt, it will not be able to participate in the management of a legal entity or work in management bodies. In some cases, a bankrupt is deprived of the opportunity to cross the border.
No matter which way you choose to declare bankruptcy, get ready to pay a tidy sum to the financier who will conduct the business. In the case of sale of the property, you will have to pay him 2% of the amount. You will need to pay the corresponding state fees and the mandatory publication of the fact of bankruptcy.