The history of banking system in this world goes back to centuries. It has evolved over the years to be more helping but even more demanding from a consumer.
The latest banking system has become a corporate circle on which human beings are dependent entirely from an individual to a whole Country. This unprecedented working has empowered the Banks and people related to them to extremes and thus we see economies been driven entirely by them.
Economics and Personal Financial Status:
We can put up a long debate on microeconomics and macroeconomics of a Country or a state and how Banks play a pivotal role in it. But to understand it in a more enlightening way we need to interpret the role of banking in an individual’s life. Banks have different schemes to offer to people in different countries.
People in developed countries have different financial statuses as compared to people living in developing or underdeveloped countries and thus banking system works differently in them.
We can consider working middle class of a developing country here to make it more understandable. You are a middle aged man working in a retails company with a handsome salary package. Life is on a planned track and you have already defined limitations to the finances.
And thus the limitations don’t allow you to buy a house or an automobile of your liking. The economic constraint of a country adds to the financial limitations of the company you work at and eventually you being affected at individual level is inevitable.
The more significant thing here is the denial in which we live while we make our financial decisions in such circumstances. We keep our financial goals and objectives very limited and in the demands of society we burden ourselves up.
This is the phase where we move to erroneous decision making of moving to a bank for financial support as Loans or external debts from friends and family. It all goes good in the beginning until the Economy shatters, the workplace shambles and you are jobless. Now the debts are high and opportunities are low.
This challenging situation makes you more vulnerable to take even more substantial steps. From the past century the idea of personal bankruptcy has evolved. It is an experience nobody expects or wants to happen to them. But the pressure from your external debts demands this way out.
Personal bankruptcy is defined as that an individual assigns (surrender) everything they own to trustee in bankruptcy in exchange for the elimination of their unsecured debts.
The legal system in different countries is designed in such a way that it allows some form of debt relief but first you need to accept this fact that you are facing Bankruptcy and what steps you can take to solve the problems related to it. And the steps are as follows: Take on board an expert Attorney and give your complete details of assets you are paying off.
Keep yourself fully updated with the laws before filing for bankruptcy.
Personal bankruptcy should be a last resort if you are in insolvency. Because it’s going to take years before the bankruptcy work off your credit and payments.
Keep working harder along the process of bankruptcy because your finances can give you a chance to repossess some of your belongings such as your automobile.
Don’t hide your assets and income from the court because it can cause a dismissal of your case.
Don’t repay personal debts to friends and family because the trustee can demand legally for this money once you file for bankruptcy.
Discuss your legal outcomes and constraints and moreover the benefits with your legal adviser beforehand.
This article covers the limited aspects of Personal Bankruptcy and I hope they are found useful.