The most shocking phase in your professional life will be that of bankruptcy if it hits you because it becomes a constant reminder of your financial ill-being.
To counter it, however, you need positivity and the assurance that many people before you have undergone this and have come out unscathed. Rebuilding credit after bankruptcy for beginners is not simple at all, but at the same time, it is not undoable. The following measures will give you a good way forward from this financial crisis.
What is Insolvency?
Insolvency is the position where you realize that your present liquidated assets are not sufficient to manage the debts that you have. When you arrive at this point, know that it is time to make drastic measures.
Value any asset you would legally sell, make a list of assets in terms of their decreasing order of importance, and shut down any excess credit cards or luxury memberships that you pay for annually. If you can do away with your asset and obtain the money before being handed the legal status of bankruptcy, that is even better because insolvency has no forceful legal repercussions.
If the aforementioned does not apply to your case and things seem to be slipping out of control and driving towards the court, it is time to take the following steps.
1. Borrow from family
Regardless of how it reflects on your professional individuality, it is important to understand that the law can be ruthless with bankrupt individuals. In such times, swallowing your pride and asking your family members for assistance is not such a bad option.
They will consider your need and will hold a soft spot for your case depending on how strong your relationship with them is. With a manageable interest rate and a promise for repayment in the future, you can get off with a lot less pressure.
2. Tap into the provident fund
Most organizations allow for their pension system to function based on provident funds, and they are accumulated while the individual is still working. Your provident fund is rightfully liquidated depending on what use you may have for it, and that can also include financing your debts in the present.
The major cost here is that of the long-term benefit you are willing to give up for momentary relief, but that too is quite important.
3. Hire a lawyer
Being declared bankrupt does not take away your rights of legal representation, and if you have a financial lawyer who is willing to hold your case in court, then do contact him. These lawyers are great help when it comes to reducing the overall defaulter penalties that you will have to face as a bankrupt individual.
However big the margin that your bankruptcy charges drop by, they are all for the taking.
Bankruptcy is not a hypothetical situation which can be ignored; it is real and has to be looked at with seriousness. If you take the measures mentioned above in time, your credit report and self-esteem can all be managed.