11th September 2013 - 3 min read
If you’ve been made bankrupt, you probably already know the
ugly truth. But if you were thinking of it as a quick way out of a sticky
financial situation: think again.
Bankruptcy can be serious and it can follow you to the end
of your days. Previously we wrote about what it means to be bankrupt and how bankruptcy can happen to you without you even knowing it
Today we’ll tell you about the
consequences of being bankrupt and let you know what you should do to get back on the path to good personal finance management and recover your credit rating.
Besides having all your assets surrendered to the Director
General of Insolvency (DGI) (as mentioned in Part 1); there are other
consequences to becoming bankrupt.
You won’t be able to:
In instances 1-5, the bankrupt can request for permission
from the DGI or the court and if allowed, he will be able to do as permitted.
These are some of the consequences you can expect which is
found stated in the Bankruptcy Act but there are other pitfalls. If you’ve been
declared bankrupt; until you repay; you won’t be able to secure any further
funding for the purchase of properties. Job-hunting will also be difficult as
companies do have policies against the hiring of bankrupts. Most large corporations
will do bankruptcy checks before agreeing to take you on.
No doubt bankruptcy is serious but it is such a seasoned
occurrence that there is always help on hand. Bankruptcy lawyers are available
to help as are the officers at the insolvency department. But these are some
Bankruptcy can be avoided through right steps but if you
have found yourself caught; continue repaying your debts and do as instructed
by the DGI and you’ll be cleared without hitch.
The above article was
written with the advice of bankruptcy lawyer, Shamalah Selvarajah; a partner at Messrs Bodipalar Ponnudurai De Silva.
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