pls ans what are th dangers n disadvantages of filing insolvency petition?? please answer iam in deep trouble

Question

what are the dangers and disadvantages of filing insolvency petition?? please answer iam in deep trouble

Answer 1

When you file for insolvency, the judge places a judgement on the debt owed by you to your creditors. He/She can write everything off, or create a stay on the repayment and arrange more easier repayment plan for you to spread the repayments over a longer period of time.

However, the judgement will also become a matter of public record and will become part of your credit rating, thus negatively impacting your credit rating.

This may cause problems if you should later try to arrange financing for a car, house, business loan or credit card. Also, you will be prohibited from becoming a director of a privately held company (British based precendence law...not sure if this exists/applies in the U.S.) or from becoming a member of the board of a public limited company.

Answer 2

all your friends who have lent you money will turn into your enemies, henceforth.