When you’re facing financial strife, it might seem like you’re sinking. The burden of financial hardship is more than some people can bear. This is why so many people have to turn to formal insolvency to help right their course. However, formal insolvency doesn’t come without risks. It will impact your personal finances in many ways. Principle Insolvency is here to talk about formal insolvency and how it impacts your life and your finances moving forward.
How You Will Be Impacted By Formal Insolvency
There are several ways that formal insolvency is going to impact you. Here are some things to keep in mind:
– Credit Rating: Your credit rating is going to take a hit when you start the formal insolvency process. It will be difficult to get any credit from bankers or lenders for things like cars and houses when you have gone through the formal insolvency process. It could even be difficult for you to find landlords that are willing to rent to you when they see your credit score.
– Banking: Believe it or not, your bank can make the decision to close out your accounts if they see that you have gone through formal insolvency. Luckily, you might find that credit unions are more willing to work with you and open accounts for you. There also might be some restrictions imposed by services like your power, gas and phone after formal insolvency.
– Employment: Hopefully, you don’t have an employer that finds your insolvency a risk for their business. Some employers see it as a threat when you’re working with cash or credit. However, formal insolvency doesn’t entitle your employer to automatically dismiss you though. Only in professions where your certificate will be revoked after formal insolvency like a lawyer, accountant or real estate agent would you likely lose your job.
– Privacy: One downfall about formal insolvency is that your name will be listed on the insolvency register and is free to the public for viewing. Your name will likely remain there for up to five years.
– Partner: If you have joint accounts with a partner, the accounts might be closed once the bank learns of your insolvency. When you have joint assets with a partner, the OA may attempt to sell your share of the assets to them or the assets as a whole might have to be sold. When the assets are sold, your partner would get their share of the profit from the sale. The rest of the profit would be used to pay your debts.
Insolvency Services in Auckland, Hamilton, Levin & New Zealand Wide
If you are facing formal insolvency because of bankruptcy, you can turn to Principle Insolvency to help you navigate the process. We will be able to answer any questions you may have and present all the options available to you as well. It is our goal to help you get back on the right track. Call us today!