Bankruptcy is sometimes caused by financial mismanagement, but some times caused by accidents, illness or other factors beyond a persons control. These include having a powerful government official abusing his powers to cause great financial losses out of jealousy and malice. Sometimes a bigger company which wants to destroy a smaller business is offering incentives to all business associates to cause business losses, delaying payments, spreading malicious rumours about the nature of the business, misusing the name of the business owner to steal benefits, and other unethical tactics. In other cases loss of a job or government regulations may cause bankruptcy.
When a person is unable to repay the loans on time, it can be very stressful, especially if all efforts to earn money are sabotaged by malicious people. In such circumstances, it may be difficult to repay all the debt on time, which include credit card debt, home loans and personal loans. The interest rates charged for non payment of loans is prohibitive, and increases the amount to be paid significantly. The lender may also send their person to hound the borrower, which can lead to a lot of stress and mental tension, affecting the health and productivity of the individual.
In such cases, it is advisable to contact a bankruptcy attorney , bankruptcy lawyer to advise the best options available to a person or business who has a lot of debt, but is unable to repay the amount and cannot find any reliable source of income. The bankruptcy attorney will advise the client on the debt and also represent the client in court if he is unable to attend the court due to circumstance beyond his or her control. The bankruptcy lawyer will provide advice to the client who is unable to repay his or her debt due to unforeseen reasons.
The bankruptcy lawyer will help the client review all the debt, and check if any of the lenders are willing to waive off the debt or reduce the debt amount, especially if the interest rate is prohibitive. They may help in negotiating the debt, by corresponding with the lenders to make them understand the circumstances under which the payments are being withheld, it is because of extremely malicious behaviour and it is advisable to give a second chance, which will help the debtor repay a reasonable portion and start life anew.
In case the lenders are extremely unreasonable and there is absolutely no chance of earning any money in future, it is advisable to file for bankruptcy under section 7 or section 13 depending on the conditions using the services of a bankruptcy lawyer. Filing for bankruptcy helps the client close all debts and start life afresh without any kind of debt at all. While some may not consider filing for bankruptcy because it will harm their reputation, it is often the best way out to end the never ending harassment by debtors who are paid for recovering the amount due, but and will not hesistate to use any tactic to do so.