As to the survey, there are numerous people who come to the decision of filing for bankruptcy and the scale grows higher and higher every year. Most creditors are confronted with the debtors who are surely the pains in their necks.
They have to formally file their complaints to the debtors who never show up themselves again, reject phone calls, and ignore notices. These creditors are not only confined to the banks, but they are also the credit card providers, loan providers, car companies, and many others.
Indeed, the decline in the financial status of the debtor produces a grave effect on the businesses of the creditors. If you have several loans here and there, you might want to picture yourself being in a state of the financial crisis.
How do you see yourself?
Would you rather enjoy being chased by banks, credit card companies, and other agents because they ask for one thing—your payment! Do you want to enjoy a life of being threatened and harassed? How do you think you would be able to cope up with such reality? Now if you do not want to even imagine yourself being the object of ridicule and threats, you need to work out on one thing and that is to avoid bankruptcy.
Why should you avoid bankruptcy?
Why is there a need for you to be careful when you make loans? The reason is very basic and simple.
You do not want to shame yourself and ruin your credit reputation! It comes instinctively that when you procure any kind of loan, you have to be sure with yourself that you have the financial capacity to pay for those. Because if you do not see yourself being capacitated of repaying those loans, then think about backing out from availing any of those.
You must avoid bankruptcy. This must not sound as if you are being mentored. You simply have to bear this in mind as a reminder to you. When you file for bankruptcy, sure enough, the stain would leave marks on your credit reports. The credit report would bear the stains of bankruptcy for a duration of almost ten years. Now when you have the dire need to secure loans, the creditors would always have second thoughts. You are not in the position to blame them though. They are running a financial business and they do not want to get unlucky. They would never risk negotiating with someone who has got a very ruined credit score. So let us say that you have been allowed to loan some money.
The thing is, you will be charged with a higher interest rate or that you could never get the entire amount of the money that you wish to borrow. Your loan could be decreased based on the discretion of the creditor. You must understand that these creditors would see you as a big risk to their businesses. More so, they would tightly hold on to your collateral so that they have something to fall back on.
Also, the loans such as child support, tax liens, and student loans are not among those that could be relieved from you. Even though you claim bankruptcy, you will still be fully obliged to meet the repayment for these loans. You must not see bankruptcy as an ultimate solution to your financial crisis. You are going to let your reputation suffer if you commit to this. Hence, as early as now, try to assess your financial capacity and gauge it with your existing loans. Avoid bankruptcy if you do not want to mess up your life.
