Bankruptcy is a condition that everybody wants to avoid. But sometimes due to poor financial management and sometimes due to the external factors which can not be controlled by the person people find themselves to be in a condition where they have to think of declaring bankruptcy. Most of the people do not know how to go about it or whether there are any other options available. In such a condition the bankruptcy advice is of great use.
First thing to do in such a condition should be to evaluate all of your assets and then find whether you will be able to pay of your loans or a major chunk of it. If such a thing is possible then go for it and ask for the time to pay of the remaining debt. If this thing fails then you should go for Individual Voluntary Agreement also known as IVA. In this you can strike a deal with your creditors where major part of your loan (up to 75%) can be waived off and you would be given five years to pay off the remaining part in fixed installments.
Even if this does not work out then you would have to go for filing the bankruptcy petition. In this many aspects related to your life like finances will come under the radar. All of your assets will be evaluated and your daily requirements to live will be left and rest all will be liquidated to pay off the debts. When this is done the creditors would not have any right to ask you for further money. You would be left over with the necessities like household things, motor vehicle and the things with which you will earn your living. This bankruptcy petition will be published in the newspapers and the gazettes. Normally after a one-year period you will be discharged of the bankruptcy and if you apply for new credit then it will be mentioned that you are a discharged bankrupt.