The debt figures in the United States remain a matter of great concern. It is a population of which half are in one form of debt or another. Most of these people settle their liabilities, but many people struggle to pay back. In terms of personal commitments, a U.S. adult, on average, has a burden of $28,000 in loans. These figures do not add mortgages with also is the most significant borrowing in the country. Another estimate shows that 85% of households in the U.S. are struggling to settle one or two forms of loans. Some people are falling behind their mortgage payments; some are delaying their business loans, while others are struggling to pay small loans and pay for auto financing or settle the credit card bills. In some cases, these inability to pay off the loan brings a person to the point of filing for bankruptcy.
What is Bankruptcy?
Over 700,000 people in America file for bankruptcy annually, which is an alarming sign. So what does bankruptcy implies? Bankruptcy is a legal process in which you go to the court, declaring your incapability of paying your financial loans to your creditors. You will get an automatic stay from the court’s order that will put a block on all your accounts, and creditors cannot make any further collection from you. With bankruptcy, the creditors will also not have any authority to confiscate your assets that they held as security against your loan.
Is Filing for Bankruptcy a Good Thing?
You’ll get immediate relief from your creditors, but is it worth going for bankruptcy? You will wipe away your debts, and it will stop those stressful calls from your collectors so, going to a court does sound like the best option you have. In reality, the last thing you should consider is to file for bankruptcy. It would be best if you first go to financial experts and advisers like the services you can avail from Concise Management Services to understand why bankruptcy is not a good pick.
Why Should Bankruptcy Not Be an Option?
There are many disadvantages once you declare yourself bankrupt. It will bring your credit history to a halt. Applying for new mortgages, auto finance, or any other lending will become challenging for you as you will have to rebuild your credit from ZERO. When you file your bankruptcy, it becomes part of public record that any lender can access, thus leading to more lending problems. With a tag of bankruptcy, you will have to struggle to get financing in the future.
Filing for bankruptcy is also something that can affect your mental stress. Many people who file for this procedure not only have to pay hefty attorney fees but during the whole process felt useless and a failure in life. The entire process takes a toll on their mental and physical health, and people develop many medical conditions. The stress often referred to as financial pressures, are the highest with people going for bankruptcy.
Concise Management Services – Offering Solutions
The team at Concise Management Services are experts who have ongoing financial education and extensive experience in dealing with all financial matters, including bankruptcy.
There is a chance where the only option you have left is bankruptcy, but let the experts look into these options and then give you the best options. Concise Management Services will look at all the choices you have in hand before selecting the bailout plan for you. They can consolidate your debts, negotiate with creditors to settle for a partial payment or cancel interest rates.
Even if bankruptcy remains the only option, the team at Concise Management Services will make the whole process easy for you and also provide you financial advisory later on how to build your credit post-bankruptcy.