Concept In most countries of the world, when an organization, company or individual is going through a financial or economic crisis of such magnitude that their assets are not enough to pay the outstanding payment obligations, it is possible to declare their bankruptcy or bankruptcy. However, the characteristics of a bankruptcy trial should make the debtor think if this will produce relief or if, on the contrary, it will be an error with disastrous consequences for his estate, that of his family, and, above all, for his integrity mental. Each individual case must be analyzed carefully to decide if the best thing is bankruptcy or the consolidation of debts.
It is necessary to remember that year after year new laws and regulations are increasingly restrictive to declare bankruptcy, in order to avoid mass bankruptcy orders that, for example, only in a country like the United States reaches one million years. For this reason, new laws exist in this country since 2005, as well as in some others, and the use of this resource to get rid of debts will not be so simple. Moreover, the bankruptcy macha the credit history of the person or company that declares it, among other disastrous consequences and, for that reason, the consolidation of debts usually appears as a solution to avoid them. Sometimes, as the only solution.
The consolidation of debt, which is making money borrowed from a lender to pay off outstanding debts, has the advantage that happens to have a single debtor to whom the monthly payments back will make money and if choose the cancellation system conveniently, the fees should be decreasing each month, although certain financing charges are added to each installment and you end up paying for more time than if you owed the debtors individually.
In order to decide the most convenient course of action, it is necessary to analyze in detail if all the possibilities for debt financing have already been explored and exploited, and the consultation with lawyers and other experts on the subject of debt consolidation is therefore imperative. before making any determination.
It is also an excellent idea to compare the different options available such as financial companies, banks and credit unions, but before making the final decision, it is necessary to find out the monthly amount to be paid, the service charge, the annual rate, the duration of the payment period, and what would happen if you pay after the date or if you stop making any payment.