Faced with the financial crisis today many people resort to filing bankruptcy. A scary step for an individual or company to take considering its drawbacks. So how does bankruptcy work? Bankruptcy is a legally declared inability or impairment of ability of an individual or company to pay their debts. The filing can be done by the debtor, voluntary bankruptcy, or by the the creditor or involuntary bankruptcy.
But Bankruptcy is not the only way to manage ones debts, a better solution is debt consolidation, it entails taking out one loan to pay off many others. It is often done to acquire lower interest rate as well as fixed interest rate or for the convenience of servicing only one loan. An example of debt consolidation is the government debt consolidation loans which aids creditors and allows them to fuse all their debts into one and pay it at a lower interest rates. A better option indeed compared to filing bankruptcy. One can truly experience financial freedom amidst the rising financial crisis worldwide.
But Bankruptcy is not the only way to manage ones debts, a better solution is debt consolidation, it entails taking out one loan to pay off many others. It is often done to acquire lower interest rate as well as fixed interest rate or for the convenience of servicing only one loan. An example of debt consolidation is the government debt consolidation loans which aids creditors and allows them to fuse all their debts into one and pay it at a lower interest rates. A better option indeed compared to filing bankruptcy. One can truly experience financial freedom amidst the rising financial crisis worldwide.
December 13, 2008 at 6:31 PM
thank God, i have not reached this point yet. but thanks for the information.