Are You Over Your Head With Your Finances?

In times gone by, bankruptcy was a major social stigma and spelled the death knell for individuals and businesses, in so far as reputation and future credit went. It was a matter of honour for many. You had to be at rock bottom financially with very little option but to declare yourself a bankrupt and all that it entailed.

Sometimes you get turned down because you don’t have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn’t good enough or there have been too many entries or notations on your credit rating file.

Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don’t want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it’s someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can’t deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.

This could include other courts, the Internal Revenue or the tax office, relevant professional organisations. The official Receiver would apply certain restrictions to your banking practices and spending. Some of your debts like mortgages, car loans etc remain and you are still responsible for them

It’s all about profit, after all.You can apply to see the contents of your credit file for a fee. There are usually several credit rating agencies and a quick Google will often provide you with the contact details for each agency. Check the contents of your file from the report that you receive from them. Inform the agency of any errors so that they can amend your file. I once noticed an entry which was obviously my son’s application for a loan and the agency had mistakenly added it to my file. Even if the agency refuses to amend your file, it is your right to have your comments as a “note of correction”.

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