what happens when you declare bankruptcy?

HowWill Your Life Work Once You Become Bankrupt?

http://nichollsco.com.au

Upon obtaining the protection of bankruptcy you will not noticeanything different. You will get up and go to work the same as youhave always done. Life goes on.

Within the first couple of weeks the phone calls from creditors willstop as creditors become aware of your bankruptcy.

You will have certainty, knowing that creditors can not pursuegarnishee notices or writs of execution against you. Your wages willbe for your needs.

Your stress levels will start to decrease as the pressure pertaining tomoney diminishes.

From feedback we have received it typically takes about 3 months forstress levels to return to normal. Having said that, we note thateveryone is different.

It is important for you to make sure that the benefit of bankruptcy isnot limited to the removal of liabilities that you cannot pay.

Bankruptcy should also improve your quality of life. To assist with thisprocess, we give you the following suggestions:

Call ‘Time’

The dynamics of your life will likely have changed as a consequence of thefinancial pressure you have been under. Take a step back and assess howyour life is working and whether you would like it to change. What are yourpriorities?



For example:

Do you want to spend more time with your spouse?

Do you want to spend more time with your kids?

Do you want to pursue a hobby?

Do you want to take time to smell the roses?

Do you want to pursue studies?

Do you want to change jobs?

Do you want to pursue a new career?

Do you want to play more sport?

Do you want to get fit etc?

Identify what caused your financial problems andlearn from your experience

There is nothing wrong with making mistakes but it is wrong to notlearn from your mistakes.

Below are some examples of what people have told us caused theirfinancial problems and actions they took to prevent the sameproblem from happening again:



Excessive use of credit cards – decided to only have a Debit Cardin the future to avoid the temptation to spend without regard.

Inability to manage money – sought budgeting training by askingfriends who could budget to show them how it is done andprovide coaching support.

Gambling – sought help from counselling services and joined agroup of people who were also trying to beat a gambling habit.

Debts from failed business – sought employment as his skillsetand talents were being underutilised due to the distraction ofhaving to run a business for which he had not been properlytrained.

Identify where you want to be in 3 years time and10 years time

Having liabilities that you cannot pay puts a lot of pressure on you andyour family. Bankruptcy is a circuit breaker and creates a greatopportunity for you to reassess where you are at and where you aregoing.

The 3 years of bankruptcy can be very formulative for future years. Manypeople aim to work on the essentials of life during bankruptcy andrecover from what they have done without during the period of extremefinancial stress. For example, start to get some new clothes, replacehousehold items that are broken, start having holidays, join a gym,commence studying etc.



What would be your plan for the three years of bankruptcy?

We also recommend to persons considering bankruptcy that they have athink about where they want to be in 10 years time and how they will getthere. Some of the answers we have received to this question are:

To be living stress free and enjoying life.

To have the kids educated and to be starting to think aboutretirement.

To have saved for retirement.

To own a home and be making significant inroads into the mortgage.

Where would you want to be in 10 years time and how do you plan to getthere?

Bankruptcy resolves unmanageable debt and creates opportunity. Whatthat opportunity is – well, that’s up to you!

Contact Us :

Nicholls & Co.E-mail : [email protected]

mailto:[email protected]

what happens when you declare bankruptcy?

Economy & Finance