Register now or log in to join your professional community.
Advantage of filling bankruptcy will trigger the automatic stay, and will prevent creditors from taking action to collect their debts and prevent them from repossessing property like car house etc
Disadvantage of filling bankrupt will affect your future credit, your reputation and will not be allowed to obtain credit and if allowed you will obtain at very high interest
Advantages are the insolvency team will handle all the documentation for filing bankruptcy for all the accounts. All reports and debts will eventually drop. If you have a very bad credit score due to missed payment accounts in collections, filing bankruptcy could actually be less detrimental to credit than remaining on current situation. Collections department will stop calling the account holder. Disadvantages is it will be difficult to qualify for personal loan , credit card and especially mortgage. the credit file report will remain on file up to six years it depends before it will drop off or will back to non credit status at all.
Advantages
Disadvantages
1. Loss of PropertyDespite the benefit of getting to keep some possessions, properties of debtors can be seized and sold to pay off creditors. This can definitely affect an individual or a business especially if the properties have high market values and the potential to increase market values. Additionally, if the property of a debtor that will be sold has a sentimental value to the family, this can be a major setback.
2. Tax Refund DenialFor debtors who have businesses and used to apply from tax refunds from the local government or state and federal governments, filing for bankruptcy can backfire because they will not be able to get approval from tax refunds which could have been a large amount of money.
3. Credit Card ScoreDefinitely, this will be affected after bankruptcy is declared. Worse, major credit cards might get canceled and applying for mortgage or any loan is not possible for many years. If the debtor has been relying on credit cards to get by and is in between jobs, this can be a major blow.
4. Domino EffectThe disadvantages of declaring bankruptcy are apparent and this legal status will simply affect many areas in a person’s life and even career. Some companies looking for potential employees do background checks and more often than not, applicants with bankruptcy records are not shortlisted. This also goes landlords because they will have to check their potential tenants’ credit history and bankruptcy is not a good thing. Some debts like tax debts, student loans, liens and support orders are not exempted from bankruptcy and the debtor still has to pay for these. This is one setback debtors have to take to heart.
1. Automatic StayWhen an individual or entity files for bankruptcy, the U.S. bankruptcy law know as automatic stay makes creditors somehow powerless to take action and collect from the debtor. After the filing, injunction is automatically ordered which prevents creditors from running after the debtor and the debtor’s properties. This also prevents creditors from calling, suing and in general, harassing the one who owes them. Automatic stays usually lasts until the bankruptcy case closes or in the case of having a prior bankruptcy declaration, for thirty days. Also, this does not erase the debt of the debtor but only postpones the collection of debt. It also has exceptions. Legal actions that are exempted from automatic stay are collection of alimony or child support, criminal proceedings, government audits on tax liabilities, co-debtors and paternity establishment.
2. Increased Credit Score RatingAlthough the bankruptcy filing record will stay for seven to ten years, a debtor can take this time as an opportunity to improve credit score. An important thing to remember is to always have a copy of the credit history and take heed of these tips. First, ensure loans are paid on time and to keep from taking out any loans, particularly payday loans. Second, save at least 10% of the monthly income. Once bankruptcy has been released, the debtor should open a secured credit card account. By following these steps, credit score rating can be rebuilt after some time.
3. Unsecured Debts Paid OffBankruptcy has several types and one is the Chapter 7 proceeding. With this type, some of the properties of the debtor will be sold to pay the debtors. The good news, however, is that there are properties the debtor can keep such as furniture pieces, clothes and care. Moreover, debts not guaranteed by collateral are automatically wiped out.
4. Bankruptcy ExemptionsAlthough filing for bankruptcy can affect a person’s credit score, it also exempts the debtor from some losses. Aside from erasing unsecured loans and keeping furniture in the home, car and clothes, exemptions are set by the federal bankruptcy code or the laws of the state. There is also the homestead exemption where in some states like Florida, there is no limit. Also, if the home does not have equity and the value is still under the exemption limit, the debtor gets to keep the home. Retirement assets are also included in the exemption.
Business transactions are the spirit of the economy at all times and places because they work on the circulation of capital in society.Which helps the economic growth and prosperity of social life and business transactions, as well as the profit of a large merchant in his business life may be subjected to financial shocks is not strong to carry out his business duties and can not meet the debt owed to others, affecting his business life and exposed to the month of bankruptcy.If the bankrupt month of the trader, this requires the taking of certain procedures in which to check the money of the bankrupt and put the seals on them so that the bankrupt manipulation of the rights of creditors and replace the bankruptcy of the bankrupt in the management of his money. After the month of bankruptcy, creditors must submit their debts until they are realized so that they can obtain their debtsA bankrupt may be a bankrupt month before he has entered into contracts with others. These contracts may be valid against creditors and may be canceled by others.Some creditors may have the right to recover goods that the bankrupt has not paid and if the bankruptcy funds are insufficient to meet the debts that are closed for insufficient funds.the first :-Collection and management of bankrupt moneyAfter the judgment of the month of bankruptcy, it follows that the hand of the bankrupt to manage his assets or to dispose of them in order to preserve the rights of creditors.Therefore, it is necessary to limit the money of the bankrupt and put the seals on them and hand them over to the bankruptcy agent so that the bankrupt does not act. If the bankrupt money is being taken, the balance sheet will be released and its books will be closed and the management will begin to take precautionary measures and collect the debts.It may also be necessary to continue the trade or manufacture of the bankrupt for the benefit of creditors and the bankrupt itselfThe law also required the deposit of all amounts obtained by the bankruptcy agent in the public treasury.Second: Achieving and supporting debts:One of the most important procedures of bankruptcy is to know the rights of the bankrupt and to ensure that they are serious and to limit them as the negative side of the bankrupt's due to the legislator's suspicion of the behavior of the bankrupt and fear of damage to his creditors or favoritism to some of them is not based much of the statement of this aspect to what the bankrupt decides or even to the debts that are clear from his books Commercial or from a budget that may not be systematic or fabricated (1)The first is the provision of debt. The provision of debt is the procedure prescribed by the legislator to enter creditors into their debts in bankruptcy and subject them to the investigationSecond: Debt realization Debt realization begins after the deadline of submission by the Secretary of the bankruptcy and his assistant observer and the presence of the bankrupt or after notification to attend. The Secretary of the Liturgy shall present each religion presented separately with its support for the discussion which ends with acceptance or disputeThird: the results of the investigationAfter the completion of debt realization 0 does not come out of one of three pictures:The first is that the religion is acceptableThe second is that religion should be disputedThird: to reject religion definitively
Disad: Most tax debt is nondischargeable.
Adv: Bankruptcy can make old tax liabilities (older than three years) go away.
Advantage of filling bankruptcy will trigger the automatic stay, and will prevent creditors from taking action to collect their debts and prevent them from repossessing property like car house etc
Chapter protection provides you with the opportunity to restructure the company without formally liquidating it. Downside is that it makes it difficult to raise funds in the future.
ADVANTAGES : Escape debts
DISADVANTAGE : Lose credibility
The advantages of filing bankruptcy are that they will will trigger the automatic stay, preventing creditors from taking action to collect their debts, prevent creditors from repossessing property such as cars, including calling you, suing you, or sending you letters. You may be able to discharge your obligation to repay any of your dischargeable debts. By using the bankruptcy exemptions, many debtors can go through the bankruptcy process without losing any of their property.
The disadvantages are- if you are unable to exempt all of your personal property or real estate under the bankruptcy exemptions , some of your property may be seized by the bankruptcy court and sold to pay your creditors.Your bankruptcy will be noted on your credit report for 7-10 years.Many credit card companies will automatically cancel your credit cards when you file for bankruptcy.A recent bankruptcy filing may hinder your ability to obtain a mortgage or loan for many years.
2549/5000 'iina almueamalat altijariat hi ruh alaiqtisad fi kl zman wamakan li'anaha taemal ealaa tadawul ras almal fa almujtamae . mimma yusaeid ealaa alnumui alaiqtisadii waizdihar alhayat alaijtimaeiat walmueamalat altijariat kama yakun fiha alribh alwafir falttajir fa hayatah altijariat qad yataearad 'iilaa huzzat maliat kabirat la yaqwaa maeaha ealaa alqiam biwajibatih altijariat wala yastatie alwafa' bialduyun alty tahamuluha tujah alakharin mimma yuathir fi hayatah altijariat wayataearad 'iilaa shahr 'iiflasih 0 fa'iidha tama shahr 'iiflas alttajir fa'iina hdha al'amr yatatalab aitikhadh 'iijra'at mueayanih fiha hasr 'amwal almuflis wawade al'akhtam ealayha hataa la yaqum almuflis bialtalaeub bihuquq alddayinin wayanub 'amin altaflisat ean almaflis fi 'iidarat 'amwalih. wayakun ealaa alddayinin baed shahr al'iiflas 'an yataqadamuu biduyunihim hataa yatima tahqiqiha hataa yastatieuu alhusul ealaa duyunihim 0 waqad yakun almuflis qabl shahr 'iiflasih qam bi'iibram euqud mae alakharin fa'iina hadhih aleuqud qad takun sariatan fi muajahat alddayinin waqad ytmu fiskh albaed alakhar fiha 0 waqad yakun libaed alddayinin haqa aistirdad albadayie alty lm yaqum almuflis bidafe thimniha wa'iidha lm takfaa 'amwal altaflisat lilwafa' bialduyun ytmu qaflaha lieadam kifayat 'amwaliha 0 al'awal :- hasr 'amwal almaflis wa'iidaratiha 0 baed sudur alhukm bishahr al'iiflas fa'iinah yataratab ealaa dhlk ghil yd almuflis ean 'iidarat 'amwalih 'aw altasaruf fiha hfazaan ealaa huquq alddayinin 0 lidha yatatalab al'amr hasr 'amwal almuflis wawade al'akhtam ealayha wataslimuha 'iilaa wakil altaflisat hataa la ytsrf almuflis fiha fa'iidha tama jard 'amwal almuflis ytmu tahrir mizaniatih watuqful dafatirah thuma tabda 'aemal al'iidarat biaitikhadh al'iijra'at altahafuziat watahsil alduyun wamubasharat aldaeawaa walsulh balnsbt lihuquq almuflis qabl alghyr 0 waqad yatatalab al'amr 'aydaan alaistimrar fi tijarat almuflis 'aw sinaeatih wdhlk limaslahat alddayinin w almuflis dhatih 0 walaqad 'awjab alqanun 'aydaan 'iidae kl almabaligh alty yahsuluha wakil altaflisat fi alkhazinat aleama . alththani : tahqiq alduyun w tuaiydiha :- min 'ahami 'iijra'at al'iiflas maerifat alhuquq alty ealaa almuflis walta'akud min jidiyatiha wahasariha biaietibariha aljanib alsalbii lidhimat almuflis wanazaraan liairtiab almushrae fi suluk almaflis wakhashyat min al'adrar bidayinih 'aw almuhabat libedihim lm yastanid kathiraan min bayan hdha aljanib 'iilaya ma yuqariruh almuflis wala hataa 'iilaya alduyun alty tatadih min dafatirih altijariat 'aw min almizaniat alty qad la takun muntazimatan 'aw mulfaqatan ( 1 ) al'awal : taqdim alduyun yuqsad bitaqdim alduyun dhlk al'iijra' aldhy rasmih almushrae lidukhul alddayinin biduyunihim fi altaflisat wakhudueuha li'iijra' altahqiq alththani : tahqiq alduyun yabda tahqiq alduyun baed aintiha' miyead altaqdim bimaerafat 'amin altaflisat wamueawinih almaraqib wahudur almuflis 'aw baed aikhtarih bialhudur . fayaerid 'amin altflyst kl din muqadim eali ainfirad mae sundih lilmunaqashat alta tantahaa biqubulih 'aw almunazaeat fih alththalith : alnatayij alty yusfir eanha altahqiq baed 'an yantahi tahqiq alduyun 0 la yakhruj al'amr ean ahd sur thlath : al'awal : 'an yakun aldiyn maqbulaan 0 alththani : 'an yakun aldiyn mutanazieaan fih 0 alththalith : 'an yarfud aldiyn nihayiyaan 0 Business transactions are the spirit of the economy at all times and places because they work on the circulation of capital in society. Which helps the economic growth and prosperity of social life and business transactions, as well as the profit of a large merchant in his business life may be subjected to financial shocks is not strong to carry out his business duties and can not meet the debt owed to others, affecting his business life and exposed to the month of bankruptcy. If the bankrupt month of the trader, this requires the taking of certain procedures in which to check the money of the bankrupt and put the seals on them so that the bankrupt manipulation of the rights of creditors and replace the bankruptcy of the bankrupt in the management of his money. After the month of bankruptcy, creditors must submit their debts until they are realized so that they can obtain their debts A bankrupt may be a bankrupt month before he has entered into contracts with others. These contracts may be valid against creditors and may be canceled by others. Some creditors may have the right to recover goods that the bankrupt has not paid and if the bankruptcy funds are insufficient to meet the debts that are closed for insufficient funds. the first :- Collection and management of bankrupt money After the judgment of the month of bankruptcy, it follows that the hand of the bankrupt to manage his assets or to dispose of them in order to preserve the rights of creditors. Therefore, it is necessary to limit the money of the bankrupt and put the seals on them and hand them over to the bankruptcy agent so that the bankrupt does not act. If the bankrupt money is being taken, the balance sheet will be released and its books will be closed and the management will begin to take precautionary measures and collect the debts. It may also be necessary to continue the trade or manufacture of the bankrupt for the benefit of creditors and the bankrupt itself The law also required the deposit of all amounts obtained by the bankruptcy agent in the public treasury. Second: Achieving and supporting debts: One of the most important procedures of bankruptcy is to know the rights of the bankrupt and to ensure that they are serious and to limit them as the negative side of the bankrupt's due to the legislator's suspicion of the behavior of the bankrupt and fear of damage to his creditors or favoritism to some of them is not based much of the statement of this aspect to what the bankrupt decides or even to the debts that are clear from his books Commercial or from a budget that may not be systematic or fabricated (1) The first is the provision of debt. The provision of debt is the procedure prescribed by the legislator to enter creditors into their debts in bankruptcy and subject them to the investigation Second: Debt realization Debt realization begins after the deadline of submission by the Secretary of the bankruptcy and his assistant observer and the presence of the bankrupt or after notification to attend. The Secretary of the Liturgy shall present each religion presented separately with its support for the discussion which ends with acceptance or dispute Third: the results of the investigation After the completion of debt realization 0 does not come out of one of three pictures: The first is that the religion is acceptable The second is that religion should be disputed Third: to reject religion definitively
