Turning Your Life Around After Bankruptcy
For some people, facing bankruptcy has helped them turn their life around rather than destroying their life. These people are by far the minority of cases where people land in financial trouble, but they do exist. Sometimes people need a sharp shock to wake them up to the reality of their situation. Once they've had the shock and come close to losing everything they may have the strength to rebuild on what they have left. Organising an IVA with their creditors could make this a lot easier to accomplish than having to declare bankruptcy.
Going to the edge and organising, is not quite the same as actually hitting rock bottom and having to go through bankruptcy proceedings. They can however end up having similar effects on a person's psyche in terms of a drive to turn the situation around. The main difference between these two paths is the way banks and lenders will treat you and the level of risk you will be regarded as. Bankruptcy is likely to label you as higher risk than a person who has an IVA.
This perceived level of risk can get in the way of a person applying for loans and mortgages, which in turn can exacerbate their financial circumstances. That does not mean it is an option never to be taken, occasionally it really is the option open to a person in trouble. To build a life back up without any assets and no access to credit can be exceptionally difficult, but it is possible. Those people who successfully manage to turn the situation around are those who are driven.
Often the motivation or drive that pushes people back up can come from having been as far down as it is possible to get. Being in a situation where you know that things cannot really get much worse is often the greatest motivator to get away from that place in their life. It will always be a gradual process to build your assets back up to a stage where you are comfortable and capable of ensuring that your debts are completely paid. This is the point where a person can stop and feel exceptionally proud.
The stakes when dealing with bankruptcy are different with the financial health of a company rather than the financial health of an individual. The impact of a company going bankrupt can be felt by a larger number of people than an individual going bankrupt. Turning a company around can be just as tricky and for many people the sense of satisfaction that one feels when your own circumstances are turned around is missing.
Going to the edge and organising, is not quite the same as actually hitting rock bottom and having to go through bankruptcy proceedings. They can however end up having similar effects on a person's psyche in terms of a drive to turn the situation around. The main difference between these two paths is the way banks and lenders will treat you and the level of risk you will be regarded as. Bankruptcy is likely to label you as higher risk than a person who has an IVA.
This perceived level of risk can get in the way of a person applying for loans and mortgages, which in turn can exacerbate their financial circumstances. That does not mean it is an option never to be taken, occasionally it really is the option open to a person in trouble. To build a life back up without any assets and no access to credit can be exceptionally difficult, but it is possible. Those people who successfully manage to turn the situation around are those who are driven.
Often the motivation or drive that pushes people back up can come from having been as far down as it is possible to get. Being in a situation where you know that things cannot really get much worse is often the greatest motivator to get away from that place in their life. It will always be a gradual process to build your assets back up to a stage where you are comfortable and capable of ensuring that your debts are completely paid. This is the point where a person can stop and feel exceptionally proud.
The stakes when dealing with bankruptcy are different with the financial health of a company rather than the financial health of an individual. The impact of a company going bankrupt can be felt by a larger number of people than an individual going bankrupt. Turning a company around can be just as tricky and for many people the sense of satisfaction that one feels when your own circumstances are turned around is missing.
For some people, facing bankruptcy has helped them turn their life around rather than destroying their life. These people are by far the minority of cases where people land in financial trouble, but they do exist. Sometimes people need a sharp shock to wake them up to the reality of their situation. Once they've had the shock and come close to losing everything they may have the strength to rebuild on what they have left. Organising an IVA with their creditors could make this a lot easier to accomplish than having to declare bankruptcy.
Going to the edge and organising, is not quite the same as actually hitting rock bottom and having to go through bankruptcy proceedings. They can however end up having similar effects on a person's psyche in terms of a drive to turn the situation around. The main difference between these two paths is the way banks and lenders will treat you and the level of risk you will be regarded as. Bankruptcy is likely to label you as higher risk than a person who has an IVA.
This perceived level of risk can get in the way of a person applying for loans and mortgages, which in turn can exacerbate their financial circumstances. That does not mean it is an option never to be taken, occasionally it really is the option open to a person in trouble. To build a life back up without any assets and no access to credit can be exceptionally difficult, but it is possible. Those people who successfully manage to turn the situation around are those who are driven.
Often the motivation or drive that pushes people back up can come from having been as far down as it is possible to get. Being in a situation where you know that things cannot really get much worse is often the greatest motivator to get away from that place in their life. It will always be a gradual process to build your assets back up to a stage where you are comfortable and capable of ensuring that your debts are completely paid. This is the point where a person can stop and feel exceptionally proud.
The stakes when dealing with bankruptcy are different with the financial health of a company rather than the financial health of an individual. The impact of a company going bankrupt can be felt by a larger number of people than an individual going bankrupt. Turning a company around can be just as tricky and for many people the sense of satisfaction that one feels when your own circumstances are turned around is missing.
Going to the edge and organising, is not quite the same as actually hitting rock bottom and having to go through bankruptcy proceedings. They can however end up having similar effects on a person's psyche in terms of a drive to turn the situation around. The main difference between these two paths is the way banks and lenders will treat you and the level of risk you will be regarded as. Bankruptcy is likely to label you as higher risk than a person who has an IVA.
This perceived level of risk can get in the way of a person applying for loans and mortgages, which in turn can exacerbate their financial circumstances. That does not mean it is an option never to be taken, occasionally it really is the option open to a person in trouble. To build a life back up without any assets and no access to credit can be exceptionally difficult, but it is possible. Those people who successfully manage to turn the situation around are those who are driven.
Often the motivation or drive that pushes people back up can come from having been as far down as it is possible to get. Being in a situation where you know that things cannot really get much worse is often the greatest motivator to get away from that place in their life. It will always be a gradual process to build your assets back up to a stage where you are comfortable and capable of ensuring that your debts are completely paid. This is the point where a person can stop and feel exceptionally proud.
The stakes when dealing with bankruptcy are different with the financial health of a company rather than the financial health of an individual. The impact of a company going bankrupt can be felt by a larger number of people than an individual going bankrupt. Turning a company around can be just as tricky and for many people the sense of satisfaction that one feels when your own circumstances are turned around is missing.
posted by zzzzzzzzzzz at
5:42 AM
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