Advantage of Repayment

The advantages of Repayment can be listed as follows

• No restrictions regarding personal credit which, although in practice, can prove difficult to obtain.
• The proposals are drawn up by the Debtor and are entirely flexible to involve personal circumstances. An example of this may be to exclude the Debtor's property from the repayment assuming that the Debtor can sufficiently satisfy creditors that the outcome would be better for them by agreeing to this than could otherwise be expected if a bankruptcy order was made in any case.
• The Debtor does not suffer the repercussions of bankruptcy, such as not being able to act as a director of a limited company etc.
• You may well be running a small business which would be difficult to keep running if you were bankrupt.
• You may be in a profession where you could lose your job in case you go bankrupt, like accountancy/police/armed forces.
•  You may have access to a large lump sum and wish to have a formal arrangement with your creditors to accept the lump sum and write off the rest of the debt.
• You may not have a very high monthly available income to make repayments.
• You will not automatically lose your house or other assets which can be kept out of the repayment plan with the agreement of your creditors.

The advantages of Repayment sure suggest its significance in paying off your debts. These advantages of repayment, if utilised efficiently, can do wonders to your dwindling finances.