India has passed its first national bankruptcy law, which it hopes will help speed up the process for companies overwhelmed with debt.
The law has been celebrated by investors, and that’s probably because it reflects why bankruptcy is such a valuable option. If you’re struggling with debt you can’t pay, perhaps you could use some of these advantages:
Bankruptcy increases payments to lenders.
A lot of people don’t realize bankruptcy actually helps companies get paid. Chapter 13 bankruptcy sets up a payment plan, and Chapter 7 frees up debtors to be able to pay their debts in the future.
It makes the process of repaying debt smoother and faster.
Clear bankruptcy laws mean everyone knows what to expect and when. Lenders can plan around it, and debtors don’t have to worry about harassing and confusing phone calls.
It gives a chance for debtors to recover.
Whether businesses in India or your family here in the States, bankruptcy is an act of mercy and also a smart law. It allows people to rebuild their companies or lives, which in turn is better for the whole economy.
It makes it less risky to invest in someone with debt.
Right now, you may have a low credit score and feel like you’re out of options. But bankruptcy allows a fresh start, which means you can start to rebuild your credit score. Over time, you can be more attractive to lenders.
Indian companies are excited to have investors trust them more; and when your debts are paid off, people often trust you more, too. You can learn more by checking out our credit rebuilding program and my Life After Bankruptcy report.
If you’re considering bankruptcy, we’re here to help you the whole way. Contact our Memphis bankruptcy attorneys today to discuss your situation for free.