Individuals or corporate entities that are no longer capable of paying off their debts to their creditors are normally considered as bankrupt. Under the law, individuals or 債務重組 corporate entities that have lost the financial capacity to handle their financial obligations in favor of their creditors have the option of declaring bankruptcy.

As provided for under the Bankruptcy Law, otherwise known as the Financial Rehabilitation and Insolvency Act of 2010, individuals or corporate entities who are under financial distress can seek for avenues wherein they are given the chance and are enabled to pay their debts under settlements that allow for extended time and without complications. While the law thus provides bankruptcy declaration as a legal means of protecting the interests of a financially distressed individual or corporate entity, it does not necessarily mean that a debtor is fully discharged from the financial obligation or debt in question.

For creditors, however, a debtor’s bankruptcy declaration can mean a bitter pill to swallow. Debt settlements can usually mean that the money which a creditor have shelled out in favor of a debtor will not easily be recovered and there is even the possibility that the original amount will be reduced. This translates to a loss of profit for the creditor, especially in cases where a settlement indicates that payments will be in the form of lots or properties that may have no enough value at all to be considered as profitable as against their initial financial outlay in favor of the debtor.

Now, who gets the most favor from Bankruptcy Law as currently practiced? Is it more in favor of a debtor or a creditor? Going back to history, bankruptcy or insolvency takes its roots from Islam. Early followers of the Qur’an practiced the teachings of the said book concerning insolvency. The Qur’an teachings states that an individual undergoing the hardships of insolvency should be allowed enough time to ease up until the ability to pay up the debt in question is regained. For a modern creditor, however, the reality of inflation and tax increases, among others, makes the bankruptcy law a disadvantage to deal with.

Corporate entities and individual business owners, however, have other means at their disposal apart from bankruptcy and closure of operations. Under Debt Restructuring, a public or private company or individual business entity, and even sovereign entities, can be allowed to renegotiate or reduce the debt in question so that financial stability can be gradually restored through a rehabilitative process. This allows for continuous business operations which in turn ensure that future debt payments can be secured by the creditor concerned, albeit in reduced and extended terms. I used to have a friend who was literally sinking in a mountain of credit card debt, but because of some advice he received from a financial wizard, he is now debt free. I am going to tell you about his credit card debt restructuring scheme in a short while, but let me caution you that it will work only if you take ACTION!

I can’t stress this enough. Many of us tend to forget that nothing moves unless we take action. We have all been done that road of procrastination day-in-and-day-out, and yet we haven’t gotten any wiser as the years passed. So, I repeat, you must take action to see tangible results. Managing your debt well and getting your financial life on track will actually raise your credit score. But it takes time to get back to better scores and get lower interest rates. You need to have patience RE-ESTABLISH your credit step by step.

The debt managing company helps in restructuring the debt by negotiating lower finance charges, interest rates and get financial penalties removed. A debt managing program is the final chance to redeem your credit. Make sure to be faithful and stick to the deadlines with the debt managers. Once you join such a program you will be required to close all your credit card accounts so that you do not start to run up more debt. Debt restructuring, with the help of a legitimate company, can be a great way to eliminate your debts quickly and increase your credit score in a short period of time. Unfortunately, in recent years there has been a dramatic increase in the number of debt resolution companies who take advantage of trusting consumers. Some of these so called professional companies have even been known to drag the consumer unknowingly into illegal activities that could result in jail time.