Declaring bankruptcy can definitely help you when you don’t have the means to pay off your current debts right away however there are some disadvantages associated with it. One of them is the effects of bankruptcy to your credit rating. When you file for bankruptcy which have been approved, credit reference agencies registers this public information about you and will remain on your file for six long years. Because of this matter, your credit rating falls drastically.

What can this drop in credit rating do for you? If prior to bankruptcy, you have been eligible to receive a fourteen percent rate credit card, you won’t be getting the same rate after you have been declared bankrupt. The best rate you can get if a credit card approves your application will be at least twenty percent.

You can still turn this around though. You can file for a discharge of this negative stigma to your local court so that your file in credit reference agencies will be eliminated. However, you can only do this procedure five years after your bankruptcy has been approved. Sometimes this proceeding may be refused or delayed by the Court so it may not be the best option for you but it is still worth a try to improve your credit rating.

Another disadvantage to bankruptcy is the rippling effect to the concerned parties involved with the issue. Say for example your business declared bankruptcy. The rippling effect includes financial loss, which will then directly affect your family, your employees who will eventually be unemployed, and lastly your suppliers and creditors who provided your business with extended credit options, they will also have diminished sales because of your business being declared bankrupt.

If you have mortgages upon filing bankruptcy, anyone who agreed to consign for your mortgage loans might be eligible for your debt. This is one of the disadvantages of bankruptcy not unless the consignee files for bankruptcy as well. But this kind of situation seldom happens, unless your consignee is a partner in business which has been declared bankrupt.

In addition to these disadvantages, the Official Receiver may take everything that you own in order to pay off your debt. Your bank accounts will be drained and closed, your credit cards will be taken, your car of value will be sold, some home furnishings will also be included, and your assets such as real estate properties, like your home, and insurance policies will also be forfeited. All of these actions are geared towards trying to pay off your debt. If they are still insufficient to cover all of your debts, you are still required to pay a small amount to your creditors each month.

If these aren’t enough, try facing the public once your bankruptcy issue has been published in local papers and even in the London Gazette. Just imagine the shame and social stigma attached to filing for bankruptcy. Most of the time relationships are directly affected by this situation.

You will also face loosing your professional and business status once your bankruptcy hits the public. This would mean prejudice when you are looking for a new job and not being able to manage, promote, or form a company without the court’s approval. When you are transacting a business proposal, you are only allowed to use your name which has been declared bankrupt. In addition to your rights being limited, you won’t be able to run for public office as well. Once you have been declared bankrupt, your immigration rights will also be terminated to avoid the possibility of escaping your responsibilities to your creditors.

As you can see, there are a lot of disadvantages to bankruptcy which all are physically, emotionally, financially and spiritually burdensome. Can you handle facing them in reality?

The feared recession has well and truly struck at the US economy and each day we see the financial system in a state of topsy-turvy. As the majority of the global market shares are dipping, it seems to be more confirmation that the advent of a recession in the US is here and well into its first month.

It’s been said that “when America sneezes the world catches cold” and this seems to be proven time and again in the current economic shakeup. The global share markets have crashed badly tumbling one after another as the talks of recession began in US. It’s truly seems that as the American economy gets weaker, so does the rest of the world.

Defining Recession

Recession can be defined as a decline in any nation’s economic growth, the GDP or Gross Domestic Product (to be precise) for more than two successive quarters of the year. A recession is also often be preceded by slowing down of several quarters.

A recession is likely to cause unemployment; salary cut backs, tax cuts and a number of other financial stresses that could have a resounding impact on the greater population.

Instead of getting panicked during this time, people in general should look for better financial options in order to save some money for themselves. Though the period of recession generally doesn’t last long, even within the short duration it can create financial havoc. Ideally you should plan things in advance when the recession is being predicted by financial experts in order to preserve your funds.

Some of the potent financial options during a recession are –

 Bond Funds: Bonds can be considered during recession as one of the potential financial options and experts agree that investment-grade corporate bonds are a better choice even than U.S Treasury Bonds. Taking this into consideration you should try to plan your finances accordingly.

 Utility Stocks: These are stocks of the utility companies that serve our basic day-to-day needs, the things that are a crucial part of our livelihood. Utility stocks are highly recommended during the period of recession as these companies provide necessities and continue to pay reasonable dividends. The products and service that these utility companies provide are usually spared from the clutches of recession; making this a wise financial option.

 Exchange Traded Funds: expert financial planners suggest the purchase of exchange-traded funds or ETFs. These are basically the stocks that keep a track of all the activities of a foremost market index. ETFs have gained immense popularity amongst individual investors as they are less expensive and much convenient in terms of investment.

Lastly, don’t forget the 401(K). Diversification is the key to success during a recession and that needs to be kept in mind. Wise investment plans and proper knowledge of the market trends can help in making profits during the low as well high times. Try to invest in solid stocks that will remain intact for the long haul and weather the recession. Remember, people often hesitate to spend money during recession; luxury items are often hardest hit. Stick with investments in essential companies that deal in wholly necessary goods and services and don’t let the recession pull you down.

I Am Legend - Trailer

Posted Jun 13, 2007

Will Smith plays a brilliant scientist who is immune to an incurable virus that wipes out New York City and maybe the world.