When you are overwhelmed with the amount of debt you have accumulated, you may consider bankruptcy as a way of getting rid of getting out of the situation. However, bankruptcy is a state of insolvency that you need to think very carefully about before entering into it. Remember that in bankruptcy, the trustee will sell your home in order to pay off your creditors. Even after you are discharged from your bankruptcy, the trustee may still pursue recovery of your debts by selling your property or even by repossessing your family?s home in order to repay your outstanding fees that were incurred during the bankruptcy proceedings.
One alternative to bankruptcy that you may want to consider is getting a home remortgage loan. With a remortgage, you can pay off your debt to your current mortgage lender, move to a mortgage with a more competitive interest rate, and often you can borrow enough extra money to pay off a number of your high interest debts such as credit cards and store cards. This allows you to only have one payment to deal with each month, and the amount of time you will have to repay it will be much longer than most common high interest debts.
However, sometimes bankruptcy may be the only way out of your financial situation. If this is the case, there are specialty remortgage lenders that cater to people with bankruptcy in their financial past or to people that are currently bankrupt. Bankruptcy remortgage specialists will work with people to find a loan option that works well for their financial situation. Do remember though that bankruptcy should only be considered as a last resort when you have not got the resources available to pay your debts and you have not been able to reach a payment agreement with your creditors. When you?ve been declared bankrupt, your financial status will become public information, and this will cause future lenders and employers to look at you in a certain financial light. Bankruptcy can relieve you of a lot of stress and uncertainty, but this feeling of relief comes with a whole new set of worries.
We would recommend speaking to a specialist debt advisor about the best option for you. Simply fill out our debt management form, and we will put you in touch with a debt professional from the SimplyFinance network.