We've all heard of some people being so over stretched with their credit card usage that they apply for a new one to service their existing credit cards. They can only go so far with this method until the financial institutions refuse them another credit card. In the meantime, the interest they are paying on all of their cards is huge. They pay only the minimum interest, leaving the principal debt often untouched. Additionally, there is still the electricity bill, the mortgage or rent and food bills to pay.
This form of spiraling financial disaster can sometimes lead to bankruptcy and drastic action by creditors in the form of debt collection agencies. Debt collection methods can include seizing goods, cars, and sequestering bank accounts, leaving the debtor with the original debt and no goods. This is never fun.
It is a matter of public record in that the Official Receiver has to advertise the fact that you are applying for bankruptcy proceedings. The advertisement is usually in local and national newspapers or official publications such as the London Gazette, depending on your circumstances. The person handling your case will also have to inform certain companies and institutions who may have an interest in your financial situation.
This could include other courts, the Internal Revenue or the tax office, relevant professional organisations. The official Receiver would apply certain restrictions to your banking practices and spending. Some of your debts like mortgages, car loans etc remain and you are still responsible for them
Debt consolidation will reduce their monthly payments and allow them to pay just one loan and free up some much needed cash for necessities. Above all, they need to decide to take any necessary action before it is too late and they are left homeless and incapable of getting any credit in the future. There is real hope out there.
This form of spiraling financial disaster can sometimes lead to bankruptcy and drastic action by creditors in the form of debt collection agencies. Debt collection methods can include seizing goods, cars, and sequestering bank accounts, leaving the debtor with the original debt and no goods. This is never fun.
It is a matter of public record in that the Official Receiver has to advertise the fact that you are applying for bankruptcy proceedings. The advertisement is usually in local and national newspapers or official publications such as the London Gazette, depending on your circumstances. The person handling your case will also have to inform certain companies and institutions who may have an interest in your financial situation.
This could include other courts, the Internal Revenue or the tax office, relevant professional organisations. The official Receiver would apply certain restrictions to your banking practices and spending. Some of your debts like mortgages, car loans etc remain and you are still responsible for them
Debt consolidation will reduce their monthly payments and allow them to pay just one loan and free up some much needed cash for necessities. Above all, they need to decide to take any necessary action before it is too late and they are left homeless and incapable of getting any credit in the future. There is real hope out there.
No comments:
Post a Comment