“Bankruptcy is a form of insolvency and is normally only suitable if you can’t pay back your debts in a reasonable time. It may seem obvious, but anyone who continuously spends more than they are making will be facing bankruptcy in no time, but there are some other ways to become flat broke. Going bankrupt is a big step and can have serious consequences. You should always receive some professional debt advice if you are thinking about declaring yourself bankrupt. Here we’ll examine 9 habits that can put you in the poorhouse.”
Bankruptcy is a pretty dire prospect – but may sound quite attractive when you trawl through the multitude of bankruptcy help websites. All your debts written off! Who’d say no to that?
However, you should think very carefully before going down that route. Bankruptcy should always be a last resort. It could have serious and sometimes unexpected implications. What does life as a bankrupt, and after bankruptcy, look like?
You could easily lose your home and car, wave good-bye to your bank account and credit cards and become persona non grata with banks and other lenders. There is a risk of losing your job or being debarred from applying for other jobs, as some professions don’t employ bankrupts.