The Problems of Bankrupycy

 You have recieved a long list of final notices, debts are pilling up, your tempted by the easy option of filling for Bankrupycy. Just take one step back, it may seem like the easy way but it may not be the best way forward. There are some important facts to consider before you jump into such a short term financial decision that will have long term impacts.
These are some of the reasons why declaring bankrupycy is a bad decision

1. Bankrupcy will have a long term affect on your credit ratings. So once you have gone through with this you will be living with this on your records for upto ten years. To most lenders you will appear as a high risk for credit lending. As a consequence it will be difficult to recieve credit and loans in those years to come.

2. Application processing will take alot longer. You need to give detailed reasons for your bankrupcy during the ten years after if you apply for a credit or loan.

3. If you recieve a loan or credit you will generally be placed on a substantially higher interest rate and creditor fees.

4. Limits your financial options, such as closure of credit cards, and bank accounts. Loss of business and general credit aqusition.

5. Ownership of any assests in your name probably will be sold off to pay your lender, such as cars, homes, boats, down to smaller items like bikes, tv's etc. sometimes it is better to barrow against your assests to pay creditors rather than leting your assests be sold for little to nothing.

6. Unfortunatley running a business in your name is very difficult, also Australian laws prohibit ex-bankruptees from acquiring a directors position in a company for a period upto seven years from the period of discharge.