Cost of Bankruptcy
Here is an article I have always liked and refer to a lot reprinted here , it should explain a lot of thing you need to know about the cost of bankruptcy.It should also be noted that the cost of bankrupcy is far more reaching than you would have first thought and a lt of thoughtmust be gone into before that route . It should be considered , as well that ,the cost of bankruptcy can be less than keeping going as is .
"Bankruptcy is a contentious word for a whole number of reasons. Firstly it relates to a situation whereby a Debtor not being able to satisfy or compound to his Creditors a suitable amount has to turn to the Courts for protection and at the end of the day everyone loses out.
Let me repeat this last fact lest it passes some by. In a Bankruptcy situation no one wins. It is a ‘lose-lose’ scenario. The Debtors by and large lose almost everything he or she owns (unless they are very carefully advised) and the Creditors by and large lose their money because when the Courts, Bankruptcy Trustees etc take their cut there is usually only a dividend of mere pence in the pound at the end of the day.
I hope all petitioning solicitors and lawyers read this with care as they are the ones who are advising all of their clients to sue people for bankruptcy. It is a bit like loading up pistols left right and centre for a ‘Russian Roulette Fest’ it gets nobody anywhere.
In fact having read the last paragraph in more detail I take back my comment about Bankruptcy being a lose-lose situation it’s not, the Lawyers and Accountants make a fortune out of their fees, no one else does.
But there is a hidden cost to all of this that no one is prepared to acknowledge and this includes
Let us analyse part of that ‘ill health’ that we referred to above and that is the area of High Blood Pressure. It is one of the few natural growth phenomena of the late 20th and 21st Centuries and now is assuming almost epidemic proportions. The stress and elevated blood pressure brought about by the comings and goings of bankruptcy and all of the shenanigans that ensue can be lethal and in some cases lead to fatal consequences.
Our Society is so powered by the worship of all things financial that in the ‘heated blood lust of debt recovery’ we seldom stop to consider the hidden human cost to all of this. I have client who as well as his business career being well and truly finished (boy was he badly advised earlier on but that is another issue) but his health, or should I say ill-health, is such now that any job prospects he might have had are now well and truly finished.
Now let us consider who well and truly gains by any of this? The answer? No one and if I can make just one final point it is a plea to any Solicitors and Lawyers who may, just may be reading this article. When you advise clients to pursue matters to Bankruptcy, get your background research carried out properly, do your due diligence well and get it right because at the end of the day as well as well and truly losing the majority of your clients money (which statistics point out is most certainly the case) you also damage the health of the person at the end of the writ.
Do you know the sad thing abut the whole side of this? I bet there is not a Solicitor or Layer who really cares, as long as they get their bonus and their fees, who gives a damn about anybody else?"
By: stephenmorgan
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Stephen Morgan writes about Financial and Health Matters for a number of web sites and more information on the above can be found at Cost of Filing Bankruptcy
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Other sites that may help
The High Cost Of Bankruptcy Fee watchers say Lehman Brothers’ massive bankruptcy could cost a staggering $1.4 billion by the time the case is completed, according to a story by Daily Bankruptcy Review’s David McLaughlin
Family income Your credit wouldn’t be affected by your wife filing bankruptcy unless you have signed on your wife’s debt. As for being responsible for the cost of your wife’s bankruptcy, her bankruptcy would cost a nominal amount each month
Bankruptcy in Firms The cost of bankruptcy to a firm comes in two different ways; direct and indirect. Direct costs include any lawyer and accountant fees; things of that nature. Indirect costs come in the form of lost sales and profits,
