When Should I Declare Myself Bankrupt?


3 Answers

mahendra kumar Profile
mahendra kumar answered
Bankruptcy is a last resort option and as such should be taken only after carefully reviewing one's financial status.

Bankruptcy is declared when one is in debt and is unable to repay one's creditors within the stipulated time period and is consistently failing to meet due monthly payments.

The decision to declare bankruptcy is made only after reviewing one's assets, current employment status and other sources of income like inheritance or financial aid from friends and relatives.

In any case one should seek legal financial advice by consulting a licensed bankruptcy trustee before declaring bankruptcy as there are a number of pros and cons involved relative to one's particular case and as such there may be a different course which could be more suitable.

Bankruptcy is generally declared voluntarily by the debtor or the creditors may themselves initiate the action and file a bankruptcy petition.

Though there is no minimum debt amount as such for one to declare bankruptcy, creditors whom you owe more than 750 pounds or $ 2000 can only take this step.

According to financial experts if a person is unemployed or is retired and has assets that can be used to settle the debts in such a case bankruptcy may be a feasible option for one.
Anonymous Profile
Anonymous answered

Only you can decide if bankruptcy is right for your situation. There are a lot
who face problems that bankruptcy can eliminate, it might have a
positive effect on their life.

Regine Kelly Profile
Regine Kelly answered
  depends on your circumstances.  Whether you really do have to file bankruptcy and if so,
  under what chapter, etc.

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