1260349298 http://www.debts.org/ en info@debts.org Copyright 2009 2009-09-30T09:46:00+00:00 http://www.debts.org/index.php/index/consequences_of_bankruptcy_what_are_they/ http://www.debts.org/index.php/index/consequences_of_bankruptcy_what_are_they/#When:14:55:00Z What are the consequences of bankruptcy? This page explores the cons of bankruptcy and show how becoming insolvent can affect every area of your life. By having all the information on the consequences of bankruptcy, making an informed decision will be a lot easier.Bankruptcy AssetsConsequences of bankruptcy become a harsh reality when you risk losing your home.Losing your property is usually unavoidable and is one of the more serious consequences of bankruptcy. In addition to this, you are likely to lose valuable assets such as your car.Long-term affects to bankruptcy are poor credit ratings, which can last as long as 6 to even 10 years. Be sure to visit our guide to credit reports. When your bankruptcy is eventually cleared from your credit report, banks will still ask if you have ever been declared bankrupt whenever you apply for a loan or mortgage. This will inevitably make borrowing more expensive.Creditors will receive a percentage of your income for three years, when combined with poor credit scores and loss of assets, this will lend significantly to your financial struggle. So be aware, creditors do not disappear when your bankruptcy is made official. Read on to learn about other consequences of bankruptcy.BusinessIf you are a business owner, you can expect your business to be shut down. Legal restriction will also dictate that anyone you do business with must be informed of the name in which you have been declared bankrupt. Needless to say, this will pose a threat to your reputation as well as end any hopes of gaining credit. A business grown over many years will come to a sudden end, another grim consequence of bankruptcy. You will also be unable to be a Director of a company or hold certain offices i.e., budgetary or financial. Furthermore, bankruptcy is a very public affair and your name will be listed in the local newspaper and the London Gazette.CareerIt is well documented that debt is rising while the age of people with uncontrollable debt is decreasing. Bankruptcy has often been viewed as an easy remedy to a financial ill, however, the 2004 Enterprise Act made reforms aimed at protecting businesses and consumers from cynical bankruptcy.  For example student loans are exempt from bankruptcy and cannot be written-off like debts to other creditors. Not only the government have been taking notice of the bankruptcy issue, so too have employers. The Law Society of England and Wales has set up a committee to review its entry policy on bankrupts, and City law firms have indicated that students who use bankruptcy to evade debt could damage their chance of a training contract.PersonalLast but not least, how it affects your personal life. The strain of being in debt is the most common reason for marriage break-ups, so there is every chance this financial crisis may cause one in your home. Relationships may be altered depending on who was the breadwinner. Sacrifices and the inevitable drop in living standards may also breed disharmony and resentment within a relationship. These are more than just ripple effects of the bankruptcy; implications of bankruptcy made on the family can be even more serious than those previously mentioned. For this reason alone it worth investigating ways to avoid bankruptcy. Return to Debt homepage. Consequences of Bankruptcy | What are they 2007-10-31T14:55:00+00:00