Should I File Bankruptcy? Learn the Facts about Debt Collection

If you’re an entrepreneur or the business manager of a large company, your employees may sometimes fall behind on their payments to you or to your vendors. If so, you will probably have to resort to hiring a debt collection agency in Sydney to collect payment from that employee or vendor on your behalf. Debt collection in Sydney can be an extremely difficult experience, both emotionally and financially. If you have been contacted by a debt collector, don’t panic! There are plenty of things you can do to improve your situation and protect your rights as the debtor.

If you’re in debt, it can be scary to know that debt collectors might be coming after you to get their money back. There are many myths and misconceptions about debt collection floating around in popular culture, but it can be even scarier if you don’t know what the actual laws say about it! If you live in Sydney, there are some specific rules and regulations that apply when debt collectors try to collect from you, so check out this handy guide to learn how to protect yourself from debt collectors’ most unethical practices.

What happens after you file bankruptcy

Filing bankruptcy does not mean that you will automatically lose all of your possessions. In fact, many people who file for bankruptcy are able to keep most, if not all, of their belongings. The first thing that happens after you file is that an automatic stay goes into effect. This means that creditors must stop all collection attempts, including phone calls, letters, and lawsuits. Your wages can’t be garnished either. The only exception is for child support payments or other court-ordered obligations such as student loans. Once you’ve filed a petition with the court, it takes anywhere from three to six months before a discharge order comes through. You’ll have full access to your credit cards again once this happens because the balances have been written off as uncollectable debts by this point in time.

Am I going to lose my home?

One of the biggest concerns people have when considering bankruptcy is whether or not they will lose their home. The answer to this question depends on a few factors, including the type of bankruptcy you file and the state you live in. If you’re only filing for Chapter 7 bankruptcy, which wipes out your debts without requiring repayment, then your home is safe. You might still be at risk if you filed for Chapter 13 and are behind on your mortgage payments before filing for bankruptcy; however, it’s unlikely that your lender would foreclose if you are current on all other loan payments (credit cards, car loans). Another factor that could put your home at risk during bankruptcy proceedings is if the judge decides that selling it would generate enough money to pay off some of your debtors. But as long as it’s valued below $2250 per square foot ($3 million) then this won’t happen.

Will filing bankruptcy affect my credit score?

If you’re considering bankruptcy, you’re probably wondering how it will affect your credit score. The truth is that bankruptcy will stay on your credit report for seven to ten years, and it will have a negative impact on your score. However, it’s important to remember that your credit score is just one factor in lenders’ decision-making process. So, if you have a strong history of making on-time payments and maintaining a good credit utilization ratio, you may still be able to get approved for a loan or line of credit.

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