Essential Things You Should Know About Filing for Bankruptcy
However simple it may be to get some loans from a bank or any other lender, the truth is that certain conditions may make you find it very hard to pay back the debt. One area of concern once you realize you are bot able to settle all the debts is the next step that is best for you. Most people and even businesses may never like the discussion about bankruptcy but now that it has already hit some people, you must know some key things about this big threat. Read more here now to get more info about what happens when you file for bankruptcy.
One of the most basic thing that you need to know about is the process and whatever happens in court. Those who play the role of making the decision are the judge and the trustee who is hired for the case. The decision on whether you are eligible for bankruptcy is made after both the judge and the trustee have reviewed information to declare you bankrupt or not.
You will also get to learn that there are very many types of bankruptcy and you can view here to know more about it. Some of the bankruptcy types are chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common. It is also important that you get to know that some of these types of bankruptcy are occupation-based such as chapter 12. As you view here now, you will also discover more than chapter 7 forgives a lot of debts that have no collateral and it also incurs the risk of selling some of the important property that you may own to pay part of the debt.
Bankruptcy filing is both a long and expensive task. You should always seek to meet the credit counselor for bankruptcy and debt and at the same time assemble all the information that may be necessary for you. Be prompt to show the court that you made efforts in ensuring that everything is settled.
Normally, the court will come up with plans to have a look at your financial situation before any decisions are made. The key participants in looking at your financial statements are the lawyer, the trustee and the creditor. It is, however, important to note that this process is not a one-day event and could take as long as several months before any approvals are made. The tips above should give you a clue about what to expect when filing for bankruptcy.