Auckland Bankruptcy Lawyer; Pros And Cons To Making The Decision
The act of bankruptcy is a legal procedure whereby an individual, known as a debtor, will obtain a court order to relieve him or herself from having to pay current debts. As can be imagined this course of action can be highly beneficial if you are unable to pay the debt; however, it is not a recommended action for people who are facing financial problems. In fact, while it may seem a simple method to resolve financial issues, bankruptcy is a serious issue for your future, not least of which is being able to gain credit for such things as an electricity supplier account. Before making any decisions about filing for bankruptcy in New Zealand, it is recommended that you discuss the position with an Auckland bankruptcy lawyer or a financial advisor. Either of these will be able to both evaluate the costs of bankruptcy and whether or not it is beneficial to your case in the long-term.
Before considering declaring bankruptcy, it is important to think about the type of debt you currently owe. This plays a large role as to whether or not bankruptcy is the most suitable process for you to follow. Initial points to take into account include whether the debts are manageable if you had better financial planning advice, are the debts dischargeable for example, a Personal Guarantee might not be included, and other factors.
Relative cost is vital to consider as this greatly influences the benefit of declaring bankruptcy. That means, how does the full, long-term cost of bankruptcy compare to the cost of repaying your debts? It should also be noted that bankruptcy can impact employment as well as credit records so it will have a major affect on various aspects of one’s life.
While filing for bankruptcy can provide relief in certain cases, it is not the case in all situations. To determine your particular situation it is best to obtain advice from an Auckland bankruptcy lawyer or credit advisor to identify whether or not you qualify for declaring for bankruptcy. Furthermore, it may be useful to resolve debts separately instead of one whole when filing bankruptcy as certain items may be regarded as indispensable where bankruptcy is not the best option.
Bankruptcy can be useful however it does have much deeper effects than people imagine and is not a decision to be taken lightly, nor with a short-term outcome in mind. You absolutely must take expert advice before making a final decision.
Probably the best course of action is to talk to an Auckland bankruptcy lawyer as they can advise on the financial, legal and personal implications of any decision you make. One of the leading lawyers is McVeagh Fleming, in the CBD.
In conclusion, before opting for bankruptcy it is necessary to review both advantages and disadvantages. It is also important to consider the different types of bankruptcy available and which would be most suitable for your particular situation. To choose the most suitable option, it is recommended you consult a bankruptcy lawyer. Do so before you commit yourself to a situation you might regret in the long-term.