Bankruptcy

This has got to be your last resort. That is after considering debt agreements, negotiation directly with your creditors, debt consolidation or even a mortgage refinance? Because bankruptcy should be, if at all possible, avoided.

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It is possible for a creditor to make you bankrupt if your bad debts amounted to over $2,000. You can, however, declare yourself bankrupt owing any amount. For a saddled debtor, voluntary bankruptcy provides a “new life” by relieving most debts owed.

Following the processing of the bankruptcy claim, you become an undischarged bankrupt for a period of three years, during which time certain restrictions are placed on your net income. However there are certain circumstances which can extend this amount of time.