Sunday, December 6, 2009

Everything you must know about Bankruptcy

By: Scarlett Lu

When you are unable to pay an organization or people you have taken credit from, you can file for insolvency which is known as bankruptcy. The main purpose people file for bankruptcy is to give a fair chance to the debtor who is honest to start a life afresh by alleviating most of his debts or to pay his creditors in new installments. They want people to have a chance in redeeming themselves. Liquidation and reorganization is the two common types of bankruptcy. When the debtors have filed in a bankruptcy case or have declared it publicly, the creditors can under no law pursue legal actions against them. When you file for bankruptcy you may lose almost everything including home, bank accounts, and even insurance.

When you file for bankruptcy it may be an emotional process but you should not rely on substances for comfort. You should make long term goals to make sure you do not become bankrupt again. Tell your family and friends do not keep it a secret; people around you will give you emotional support. Get Exercise to cope with stress. Don’t be ashamed to ask for professional help. Remember it’s a difficult time in your life; you will overcome it.

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