Bankruptcy is supposed to give you a fresh start. Relieving you of your debt worries; it enables you to move on with your life without the constant stress and worry that you had when creditors were constantly calling demanding repayments. However, all too often many people do not realize what the consequences of bankruptcy are. It can last for up to ten years on your credit report and that can be damaging if you need future credit including loans, mortgages and credit cards.
It would be a good idea to seek free bankruptcy advice before you even think about filing for bankruptcy. A professional will be able to tell you exactly how it will affect you and whether there are any alternatives that you could benefit from. If you have already been declared bankrupt and you feel that it was a mistake then you can request to be freed from bankruptcy by the court.
Being Freed from Bankruptcy
There are a few ways in which you can be freed from bankruptcy. If you have paid all of the bankruptcy fees as well as the debts that you owed before bankruptcy then you can request for the court to annul the bankruptcy order. It will then be eliminated from your record within one year. This is also the case if a bankruptcy order was given by mistake.
A bankruptcy can be declared without you actually knowing about it. This is because you do not actually have to be in court when you are declared bankrupt. This usually happens if you have moved or for some reason you have not been getting letters from your creditors or the court. If you ignore contact with your creditors for a certain period of time then they can demand payment through the court. If you do not know anything about it and you do not reply to the court then they can declare you bankrupt. Obviously if you have moved and you have not been receiving correspondence from either the court or the creditors then you can request to have the bankruptcy annulled and you can pay off the debt in full or through repayments if your creditors will allow it.
Obviously the above is an extreme circumstance and you will very rarely be declared bankrupt by mistake. However if you are then there is a chance that you can free yourself from bankruptcy.
The best way to be free from bankruptcy is to obviously avoid it altogether. Always look into the alternatives before you declare yourself bankrupt. If you have been made bankrupt and you would like to eliminate it from your record then there may be a chance that you can pay off the debt that you owed and therefore eliminate the bankruptcy from your report.
Overall bankruptcy can have a very negative effect on a person’s life. For that reason it is always a good idea to look into all possible alternatives before you even consider it. Seek out free bankruptcy advice to see what options are available to you. It is much more beneficial to avoid bankruptcy than it is to declare yourself bankrupt and then worry about freeing yourself from it at a later date!
